Ripple Chief Legal Officer Stuart Alderoty urged the U.S. Treasury to preserve self-custody and peer-to-peer transfers as it develops rules under the GENIUS Act. Alderoty said the framework should protect Americans using stablecoins, with users retaining the ability to hold and transfer assets without being forced through custodial intermediaries.
The GENIUS Act established the framework. Now, Treasury’s rules must ensure that Americans are not stranded holding stablecoins if regulations change, have pathways to recover stolen funds, and can self-custody if they choose. https://t.co/tG4NknCzFF
— Stuart Alderoty (@s_alderoty) October 19, 2026
Alderoty also argued that future rules should prevent holders from becoming stranded if an issuer loses authorization or regulatory requirements change. He called for practical pathways allowing users to redeem, sell or convert affected stablecoins and supported mechanisms for recovering stolen assets through lawful processes, while software providers that do not control customer assets should remain distinct from custodial financial intermediaries.
The Treasury’s implementation process remains underway, meaning Alderoty’s recommendations represent industry input rather than finalized regulation. The next milestone will be how Treasury incorporates self-custody, redemption protections and asset-recovery provisions into its final stablecoin rules, which will determine how the GENIUS Act operates in practice for issuers, service providers and individual users.
Source: Stuart Alderoty.
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