The Blockchain Association, a crypto industry group, is asking regulators to keep peer-to-peer transfers out of new stablecoin ID rules. Its position centers on which stablecoin transactions should trigger customer identity checks, and which should not.
The debate stems from a joint federal rulemaking on stablecoin issuers. The proposal would require issuers of permitted payment stablecoins to maintain a customer identification program, according to the Federal Register filing. A customer identification program is a set of rules that firms use to verify who their customers are. For related coverage, see Overlooked SHIB and Pepe When It Was Early? Apeing Could Be the Next 100x Meme Coin to APE Into.
What the Blockchain Association is asking for
The Blockchain Association wants the rules to exclude peer-to-peer transfers. A peer-to-peer transfer is a direct payment sent from one user to another, without a company sitting in the middle. For related coverage, see BounceBit Retires Layer 1 After Authorization Flaw Moved 286.5M BB Tokens.
The group laid out this view in a formal comment on the rulemaking, published on its website. The core request is a carveout, meaning an exception that leaves certain transactions outside the ID requirement. For related coverage, see Coinbase launches four tokenized U.S. stocks on Base with 1:1 backing.
Why peer-to-peer transfers are the focus
The argument turns on the scope of the rule. Scope means how far the requirement reaches, and which transaction types it covers.
Direct user-to-user transfers sit at the center because they do not involve an intermediary who would normally collect ID. Applying the same ID requirements to those transfers raises a practical compliance question: who is responsible for checking identity when no company is involved?
The Blockchain Association’s broader work on this topic is outlined on its stablecoin policy page. The compliance debate here is about matching the rule to the transaction type, rather than treating every stablecoin transfer the same way.
What this could mean for the stablecoin policy debate
The rulemaking itself was introduced earlier in the process by federal regulators, as reported by The Block. The industry position now signals disagreement over how direct crypto transfers should be treated under those rules.
Identity and compliance rules have been a recurring theme across crypto policy this year, from expanded U.S. Treasury sanctions touching crypto to industry efforts to fight illicit activity like the rise in deepfake scam losses. The stablecoin carveout request adds a new front to that ongoing conversation.
For a regular crypto holder, here is the practical takeaway. If the carveout is granted, sending stablecoins directly to another person could stay outside formal ID checks. If it is not, more everyday transfers could eventually face identity requirements. Nothing is final yet, and the outcome depends on how regulators respond to the comments.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
