Original sourceccn.com
Summary
Under the GENIUS Act, stablecoin issuers must comply with AML and sanctions screening obligations, but a significant volume of transactions occur on DEX aggregators (e.g., Jupiter with ~90% of Solana volume), making them key enforcement nodes. Issuers must be able to block illicit transactions but…
Key points
- Signals that stablecoin compliance pressure extends from issuers to decentralized infrastructure.
- DEX aggregators may be forced to implement KYC mechanisms, altering user experience and privacy in decentralized trading.
- Stablecoin issuers need to implement sanctions screening and geo-blocking at the routing layer; aggregators may pass compliance costs to users or push for further decentralization to evade regulation.
- Similar to sanction screening obligations in traditional finance's SWIFT system, but extended to the on-chain routing layer.
Editorial note
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