AFC urges the Treasury to adopt objective issuance standards that ensure U.S. based stablecoin providers can offer their services globally  

Washington, DC (October 20, 2026) – The American Fintech Council (AFC), the largest industry association representing both responsible fintech companies and innovative banks, submitted a comment letter in response to the U.S. Department of the Treasury’s notice of proposed rulemaking implementing Section 3 of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). AFC commends the Treasury for its efforts to translate the issuance and distribution requirements of the Act into a coherent regulatory framework that protects domestic market participants while preserving responsible innovation.

“A workable stablecoin framework must provide clear administrable boundaries that protect U.S. consumers without unnecessarily restricting legitimate cross-border payment activity,” said Phil Goldfeder, CEO of the American Fintech Council. “By focusing on substantive control and the location and purpose of transactions, the Treasury can ensure that fintech companies, exchanges, and other intermediaries are able to distinguish permissible activity from conduct that creates legal exposure, helping to support responsible innovation in our financial system.”

AFC recommends that the Treasury retain a transaction-specific approach to determining whether a payment stablecoin has been issued domestically, focusing on whether the issuer is located domestically or knowingly directs the initial transfer to a U.S. recipient. AFC further urges the Treasury to clarify that the definition of issuance should depend on the creation or transfer of an enforceable claim to an independent purchaser, rather than internal movements like minting into a treasury wallet or transferring between commonly controlled wallets. The final rule should clearly differentiate between transactions that alter beneficial ownership and those that merely change custody or facilitate on-ramping and off-ramping activities.

“To preserve lawful market access and prevent regulatory arbitrage, it is critical that the final rule establishes objective intermediary obligations and robust safeguards,” said Ian P. Moloney, Chief Policy Officer at the American Fintech Council. “We recommend that the Treasury establish a publicly accessible mechanism for identifying permitted stablecoin issuers, implement key policies for offshore transactions, and clarify the distinction between providing neutral infrastructure and knowingly facilitating unlawful stablecoin issuances.”

AFC advocates for a risk-based foreign issuer verification process that places primary responsibility for technical capabilities and compliance with lawful orders on the issuer controlling the token architecture. Providers should be allowed a rebuttable reliance mechanism based on written issuer attestations and proportionate due diligence. AFC also calls for the final rule to fully bring about express statutory protections for direct individual transfers, qualifying foreign account transfers, and transactions utilizing self-custody software or hardware wallets.

A standards-based organization, the American Fintech Council (AFC) is the largest and most diverse trade association representing financial technology (fintech) companies and innovative banks. On behalf of nearly 175 member companies and partners, AFC promotes a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumer segments and geographies.

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