Summary
- Ripple CLO Stuart Alderoty urges Treasury to protect stablecoin holders from losing access to funds under GENIUS Act licensing requirements.
- NCA proposes redemption safeguards, legal procedures for recovering stolen stablecoins, and protections for personal wallets and peer-to-peer cryptocurrency transfers nationwide.
- SEC Chairman Paul Atkins reaffirms plans for clearer cryptocurrency regulations despite congressional delays, supporting broader federal efforts toward regulatory certainty.
Ripple Chief Legal Officer Stuart Alderoty has urged the U.S. Treasury to strengthen stablecoin consumer protections under the GENIUS Act, outlining recommendations in a formal comment letter as president of the National Cryptocurrency Association (NCA).
According to the NCA, the submission addresses Section 3 regulations under Docket TREAS-DO-2026-0496, proposing safeguards to prevent consumers from losing access to stablecoins when issuers encounter licensing problems.
The association supports requirements for issuers to maintain reserves covering 100% of outstanding stablecoins while proposing additional safeguards for consumers. These proposals address redemption rights, stolen asset recovery, and protections for individuals using personal cryptocurrency wallets.
Also Read: BlackRock Seeks SEC Approval for Bitcoin ETF With Downside Protection
NCA Proposes Redemption Safeguards and Legal Protections for Stablecoin Users
A central recommendation calls for temporary protections when stablecoin issuers lose authorization or miss regulatory deadlines. Under this framework, holders could redeem, exchange, or transfer stablecoins during a designated transition period without unnecessary restrictions.
We're back on X.
— 36Crypto (@36Crypto1) August 21, 2026
Our previous account (36crypto2) is currently unavailable while we continue working through the appeal process. In the meantime, this is our new official account. While you are on this page, please support us by sharing and following.
Exchanges could also assist affected customers without facing penalties for facilitating transactions involving previously authorized issuers. These protections would address potential disruptions surrounding the GENIUS Act’s July 18, 2028, compliance deadline.
Beyond redemption safeguards, the NCA wants Treasury regulations to clarify procedures for recovering stolen or mistakenly transferred stablecoins. The proposal would allow issuers to replace affected tokens when courts authorize recovery through lawful orders.
Specifically, the association argues that replacement transactions should qualify under the law’s existing lawful-order exception. Additionally, issuers would follow FinCEN requirements when freezing assets and notify affected customers about relevant enforcement actions.
The recommendations also address whether non-custodial wallet developers should face obligations intended for financial intermediaries. NCA maintains that developers lacking control over private keys should not automatically qualify as regulated intermediaries.
SEC Chairman Paul Atkins Reaffirms Crypto Regulatory Plans Amid Legislative Delays
Meanwhile, the Securities and Exchange Commission (SEC) has reaffirmed plans to establish clearer cryptocurrency regulations despite legislative challenges in Congress. As reported by 36Crypto, SEC Chairman Paul Atkins emphasized the agency’s responsibility to strengthen regulatory clarity across digital assets.
The commitment follows Patrick Witt’s departure from the White House Crypto Council, where Witt advanced President Donald Trump’s cryptocurrency agenda. Atkins praised Witt’s contributions to the administration’s regulatory efforts and acknowledged cooperation on cryptocurrency policy development.
“Patrick’s tireless leadership played a key role in pushing forward President Trump’s vision of American crypto dominance,” Atkins wrote.
The SEC’s regulatory efforts complement Treasury’s stablecoin oversight work, particularly regarding compliance requirements and consumer protection. Both developments reflect broader federal efforts to establish clearer rules for cryptocurrency businesses and investors.
Treasury officials must evaluate the NCA’s recommendations before determining how stablecoin licensing, asset recovery, and personal wallet protections operate.
Also Read: Crypto Market Update: Bitcoin Holds $83,000 as Zcash and Smaller Tokens Lead Gains
