U.S. Treasury Seeks Public Input on GENIUS Act Stablecoin Regulations

US Treasury calls for public comment on GENIUS stablecoin bill

The comments, due by Oct. 17, will focus on "innovative methods to detect illicit activity involving digital assets," as required by the GENIUS Act. The US Treasury Department has issued a call for comments related to the passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, signed into law by President Donald Trump in July. In a Monday notice, the Treasury said "interested individuals and organizations" could provide feedback to the government department on "innovative or novel methods, techniques, or strategies to detect and mitigate illicit finance risks involving digital assets." Treasury officials said the call for comments by Oct. 17 was part of the requirements under the GENIUS Act. In a Monday X post, Treasury Secretary Scott Bessent called the move "essential" for implementing the law to "[secure] American leadership in digital assets." After receiving comments from the public, the Treasury will research the methods proposed and submit reports to the Senate Banking Committee and House Financial Services Committee. The bill to regulate payment stablecoins is expected to go into effect 18 months after it was signed into law on July 18 or 120 days after the US Treasury and Federal Reserve finalize regulations. The timing of the implementation suggested that the bill, one of the first crypto-related laws passed under the Trump administration, would be less likely to be used as a campaign issue for candidates potentially running on crypto policies in the 2026 midterm elections. Related: Sherrod Brown, targeted by crypto PAC in 2024, to run for US Senate again Among the potential uses for "illicit activity" for which Treasury requested comments was money laundering with crypto. The GENIUS Act also specified that the department seek feedback on application programming interfaces (APIs), AI, digital identity verification, and "use of blockchain technology and monitoring." The passage of the GENIUS Act, one of the first crypto-related bills to move out of the Republican-controlled Congress under Trump, was just one of three pieces of legislation under consideration. As part of Republicans' "crypto week" plans in July, the House of Representatives passed the GENIUS Act, the Digital Asset Market Clarity (CLARITY) Act and the Anti-CBDC [Central Bank Digital Currency] Surveillance State Act with bipartisan support. The CLARITY Act and CBDC bills have been sent to the Senate, which will remain in recess until September. Leadership at the Senate Banking Committee has suggested it intends to prioritize crypto market structure, passing its own version of the CLARITY Act by October.

US Treasury seeks comment on stablecoins

This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. Today's request for comment fulfills Treasury's obligation pursuant to section 9(a) of the GENIUS Act, which creates a comprehensive regulatory framework for stablecoin issuers in the United States. The GENIUS Act and E.O. 14178 together promote U.S. leadership in digital assets and bolster U.S. national security. This request for comment offers the opportunity for interested individuals and organizations to provide feedback on innovative or novel methods, techniques, or strategies that regulated financial institutions use, or could potentially use, to detect illicit activity involving digital assets. In particular, Treasury asks commenters about application program interfaces, artificial intelligence, digital identity verification, and use of blockchain technology and monitoring. Innovative tools are critical to advancing efforts to address illicit finance risks but can also present new resource burdens for financial institutions. As required by the GENIUS Act, Treasury will use public comments to inform research on the effectiveness, costs, privacy and cybersecurity risks, and other considerations related to these tools. As provided in Section 9(a) of the GENIUS Act, members of the public should submit comments within 60 days of publication in the Federal Register by October 17.

U.S. Treasury Seeks Public Input on GENIUS Act Stablecoin Rules

Circle CEO Jeremy Allaire hails stablecoin law as a milestone for U.S. leadership. The U.S. Treasury has put the GENIUS Act into open consultation. The end result will be influenced by public comments, and it may fast-track the use of stablecoins globally. U.S. Treasury Seeks Comments Regarding GENIUS Act The U.S. Treasury has made a significant step regarding the GENIUS Act, a law aimed at stablecoin regulation and enhancing American dominance in the digital finance industry. Through a press release, the Treasury made a formal Request for Comment directing people to comment on how oversight over stablecoins should be done. As part of the consultation process, the department is seeking feedback on the use of new tools to combat illicit finance. These include artificial intelligence, blockchain monitoring, digital identity verification, and application programming interfaces. Public input will help determine how effective these technologies are, as well as their costs, privacy risks, and cybersecurity challenges. The deadline for comments is October 17, with all submissions posted publicly at regulations.gov. The GENIUS Act, signed into law earlier this year, creates a comprehensive framework for stablecoin issuers operating in the United States. It builds on President Donald Trump's Executive Order 14178. This is set to bolster America's leadership in digital finance technology. Previously, Trump signed an executive order allowing crypto investments in 401k plans. Treasury Secretary and Circle hail Stablecoin Regulations as Digital Finance Milestone Treasury Secretary Scott Bessent said the measure is essential for U.S. leadership in the sector. He noted that stablecoins expand global access to the dollar and increase demand for U.S. Treasuries, which back them. Bessent described the GENIUS Act as a "win-win-win" for users, issuers, and the government. A recent report also noted that U.S. Bitcoin reserves may be worth up to $20 billion, showing Washington's growing commitment to digital assets. Industry leaders have echoed this sentiment. Jeremy Allaire, CEO of Circle, welcomed the milestone, calling it more than financial legislation. He said it shows the U.S. is ready to embrace innovation that makes finance safer, more transparent, and more inclusive. Allaire credited Circle's team, bipartisan policymakers, and developers for advancing the effort. He added that this moment demonstrates the U.S. commitment to staying ahead in digital currency competitiveness. In a follow-up post, Allaire highlighted reporting from Semafor that described the GENIUS Act as the "starting gun" for a new era in financial technology. He said the internet is now colluding with the global financial system to create extraordinary opportunities. The shift reflects years of lobbying and persuasion to bring stablecoins into mainstream financial discussions, with Allaire playing a key role in convincing doubters.