US Treasury Invites Public Feedback on GENIUS Stablecoin Act
The US Treasury Department is moving forward with its efforts to regulate the digital assets space by inviting public input on the recently signed Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. Signed into law in July, this groundbreaking legislation aims to enhance the nation’s leadership in financial innovation while addressing potential risks associated with digital assets.
What is the GENIUS Act?
President Donald Trump signed the GENIUS Act into law on July 18, establishing a framework to regulate payment stablecoins in the United States. To uphold its requirements, the Treasury Department is now requesting feedback from “interested individuals and organizations” on innovative ways to detect and combat illicit financial activities using cryptocurrencies. Public comments are open until October 17, encouraging participation from multiple sectors, including blockchain developers, financial experts, and AI innovators.
Key Areas of Public Comment
The Treasury’s primary focus areas include:
- Using blockchain-based solutions to track and monitor transactions.
- Application of artificial intelligence (AI) in detecting illicit activities like money laundering.
- Blockchain-powered digital identity verification systems for enhanced security.
- Development of application programming interfaces (APIs) for regulatory compliance.
Treasury Secretary Scott Bessent emphasized the initiative’s importance, calling it a necessary step in ensuring that the United States remains competitive and secure within the growing digital asset industry.
What Comes Next?
After the public feedback period, the US Treasury plans to evaluate the methods and solutions submitted, compiling their findings into comprehensive reports for the Senate Banking Committee and the House Financial Services Committee. Once regulations are finalized, the GENIUS Act will take full effect—expected to occur within 18 months of the bill’s signing or 120 days after the regulatory framework is implemented.
Broader Implications for Cryptocurrency
The GENIUS Act is part of a broader legislative ecosystem, which also includes the Digital Asset Market Clarity (CLARITY) Act and the Anti-CBDC Surveillance State Act. Together, these bills aim to bring more clarity and regulation to crypto markets. The GENIUS Act sets a precedent as the first major crypto-related bill under a Republican-controlled Congress and could signal a future where stablecoin innovation thrives under effective governmental oversight.
Consider Safe Crypto Practices
The increasing legislative focus on digital assets comes as cryptocurrencies continue to gain traction globally. Industry participants are advised to adopt proven anti-scam tools and platforms for safer investments. For those exploring cryptocurrency security, products like Ledger Nano X, a reputable hardware wallet, ensure the security of digital assets and private keys, offering users peace of mind.
