[A16z Suggests U.S. Treasury Exclude Decentralized Stablecoins from GENIUS Act Regulations] A16z Crypto has sent a letter to U.S. Treasury Secretary Scott Bessent, recommending that the Treasury explicitly define stablecoins in its regulatory guidelines and exclude decentralized stablecoins from the regulatory scope of the GENIUS Act. A16z pointed out that decentralized stablecoins like Ethereum-collateralized LUSD, which are issued through autonomous smart contracts without centralized entity control, should not be considered as issued by an 'individual.' They suggest referencing the decentralization determination framework outlined in the 2025 Digital Asset Market Structure Clarity Act. Additionally, A16z called for the modernization of anti-money laundering (AML) and KYC rules while avoiding stifling innovation. Regulatory head Michele Korver stated that decentralized digital identities, combined with zero-knowledge proofs and multi-party computation technologies, can protect privacy and enhance national security.