A16z urges US Treasury to exempt decentralized stablecoins from GENIUS Act oversight
a16z crypto asked the US Treasury to exempt decentralized stablecoins from the GENIUS Act's oversight to foster innovation.Summary
a16z crypto, the venture capital firm Andreessen Horowitz's crypto wing, sent a letter to Treasury Secretary Scott Bessent urging clarification on stablecoin regulations under the recently passed GENIUS Act. While praising the act, a16z argued that decentralized stablecoins, like LUSD issued via autonomous smart contracts, should be explicitly exempt from the law's prohibition on issuance by non-permitted entities. The firm recommended adopting a control-based decentralization framework from the 2025 Digital Asset Market Clarity Act to define the scope. Furthermore, a16z suggested decentralized digital identity solutions, utilizing privacy-preserving cryptography like zero-knowledge proofs, as an innovative way to combat illicit finance while protecting user privacy and reducing cyber risks.
(Source：The Block)