a16z: Decentralized Stablecoins Should Be Exempted, Clarify the Applicable Boundaries of the GENIUS Act

Techub News reported, according to The Block, a16z crypto sent a letter to U.S. Treasury Secretary Scott Bessent on November 4, responding to the proposed rules for the GENIUS stablecoin bill passed earlier this year. a16z stated that GENIUS is "an important step forward for the digital financial future," but key definitions need clarification. It also stated that decentralized stablecoins issued through autonomous smart contracts, without a centralized controlling party, should be excluded from regulation.

a16z claimed that the Treasury should clarify that decentralized stablecoins are not issued by a "person" as defined by the bill, and therefore should not be subject to the restrictions and prohibitions on issuers under Section 3(a). The above suggestions still await further response from regulators and the finalization of the rules.