The U.S. Treasury Department is seeking stakeholder feedback regarding implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act intended to create a comprehensive regulatory framework for stablecoin issuers in the United States.
According to the U.S. Treasury, the Trump administration is interested in hearing from individuals and organizations regarding “innovative or novel methods, techniques, or strategies that regulated financial institutions use, or could potentially use, to detect illicit activity involving digital assets,” in an agency press release.
Specifically, the administration has requested commenters weigh in on topics pertaining to application program interfaces, artificial intelligence, digital identity verification and use of blockchain technology and monitoring. The request fulfills the Treasury’s obligation pursuant to section 9(a) of the GENIUS Act to provide interest stakeholders an opportunity to provide feedback.
The administration has framed the GENIUS Act as a measure that aligns with its priority of promoting responsible growth and use of digital assets, as outlined in Executive Order (E.O.) 14178 on “Strengthening American Leadership in Digital Financial Technology.”
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.
Interested stakeholders will have until Oct. 17 to submit comments, 60 days from the date the request for comment was published in the Federal Register. Comments responding to this request will be publicly viewable at www.regulations.gov.