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A16z calls on the U.S. Treasury to exempt decentralized stablecoins from GENIUS Act regulation.
According to Mars Finance, The Block reported that a16z's crypto division recently sent a letter to U.S. Treasury Secretary Scott Bessent, urging a clear definition of the GENIUS stablecoin bill and advocating that decentralized stablecoins should be exempt from regulatory scope. The company cited LUSD, which is supported by Ethereum collateral, as an example, emphasizing that such stablecoins are issued through autonomous smart contracts without a central controlling entity. a16z also suggested adopting the decentralized framework from the 2025 Digital Asset Market Clarity Act and proposed using decentralized digital identity as an innovative solution to combat illegal finance, highlighting that technologies such as zk-SNARKs can achieve secure identity verification while protecting personal data.