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According to Wu, a16z crypto has submitted the first round of feedback on the implementation phase of the GENIUS Act to the U.S. Treasury, recommending the enhancement of compliance and security through "privacy-preserving decentralized digital identity." a16z calls for FinCEN to update anti-money laundering (AML) and KYC rules to allow financial institutions to adopt encryption technologies such as zero-knowledge proofs (ZKP) for a win-win in identification and privacy protection. They also emphasize the need to clearly distinguish between "decentralized stablecoins" and "payment stablecoins," promoting a regulatory framework that encourages fair competition and is technology-driven, ensuring that the GENIUS Act strengthens the dollar's status while unleashing innovation potential.

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