Consensys supports the GENIUS Act's comprehensive framework for stablecoin regulation, and appreciates the Department of the Treasury’s engagement with stakeholders as it develops rules. As the company behind MetaMask, a self-custodial wallet used by over 100 million people worldwide, we have a deep interest in ensuring that final regulations preserve the self-custody principles that Congress and the Administration have championed.
However, we urge Treasury to ensure that final rules clearly distinguish between self-custodial software tools, like wallets, and regulated Digital Asset Service Providers (DASPs). Self-custodial wallets should not be classified as DASPs, even when they offer additional services like swaps, bridges, or fiat on-ramps to improve the user experience.
Our letter to Treasury on the matter makes three key points:
1. Self-custody is a policy priority. Both Congress and the Executive Branch have recognized self-custody as fundamental to American leadership in digital finance. The GENIUS Act reflects this by carefully distinguishing the stablecoin space from decentralized finance and self-custody technology.
2. Self-custodial wallets are not DASPs. Wallets like MetaMask do not perform the enumerated DASP activities—we do not exchange assets, transfer assets on behalf of users, provide custody, or participate in token issuance. We simply provide tools that enable users to transact on their own behalf.
3. The GENIUS Act exempts wallet transactions. Section 3(h)(1)(C) exempts transactions conducted via self-custodial wallets from the Act's prohibitions. Treasury should clarify that all wallet transactions—including those using embedded services—fall within this exemption.
A clear regulatory framework that respects these distinctions will help the United States build a safe, resilient, and competitive digital asset economy while preserving the innovation that has made American blockchain technology a global leader.