TLDR:
- Treasury issued a Request for Comment under the GENIUS Act to shape stablecoin regulation in the United States.
- The Act sets a comprehensive framework for stablecoin issuers while aligning with President Trump’s digital asset policy.
- Treasury seeks input on AI, blockchain monitoring, and identity verification for combating illicit finance in crypto markets.
- Public comments will inform research on costs, privacy, cybersecurity, and regulatory effectiveness for stablecoin oversight.
The U.S. Treasury has officially kicked off the process of shaping stablecoin oversight with a fresh request for public input. The step comes under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, signed into law earlier this year.
Washington has linked the effort to broader goals of securing U.S. leadership in digital financial technology. The request also forms part of President Trump’s Executive Order on strengthening America’s position in global digital asset markets.
Officials described the move as a chance for individuals, industry players, and financial institutions to help define the rules. By calling for feedback, the Treasury aims to gauge the effectiveness of innovative tools while balancing security, privacy, and compliance needs.
Stablecoin Regulation Under the GENIUS Act
According to the Treasury’s press release on August 18, the GENIUS Act creates a comprehensive framework for stablecoin issuers in the U.S. Section 9(a) of the Act requires the agency to collect public comments before finalizing certain provisions. Those comments will help guide policies on stablecoin issuance and monitoring.
The Treasury is seeking input on advanced methods used by regulated institutions to track digital asset activity. These include blockchain-based monitoring, application programming interfaces, artificial intelligence, and digital identity tools. Officials said the feedback would be critical in balancing innovation with safeguards against illicit finance.
Treasury Secretary Scott Bessent reinforced the administration’s position in a post on X. He stated that stablecoins could expand dollar access globally while fueling demand for U.S. Treasuries, which back the tokens.
Public Feedback on Crypto Oversight
Beyond technology, the department wants to know about the costs, cybersecurity risks, and privacy concerns that come with such measures. Public feedback will be used to assess whether the tools are practical for financial institutions without creating extra burdens.
The GENIUS Act obligates Treasury to study how innovative systems perform when applied to real-world compliance checks. Interested parties have until October 17 to submit comments through the Federal Register. Officials said the responses would inform ongoing research and guide next steps in rulemaking.
The initiative reflects the administration’s strategy to maintain U.S. dominance in the fast-growing stablecoin sector. By setting out clear requirements for issuers, officials believe the U.S. can expand adoption while securing its financial system.
Stablecoins remain a central point of debate in crypto regulation, with their role in payments and financial markets drawing attention from regulators worldwide. The GENIUS Act, together with E.O. 14178, places the U.S. among the first to design a national framework specifically for this segment of crypto.
With the latest request for comment, Washington is signaling its intent to move regulation forward while giving the industry a voice in shaping the rules.
The post Just In: U.S. Treasury Advances GENIUS Act, Bessent Flags Stablecoin Growth appeared first on Blockonomi.
Source: https://blockonomi.com/just-in-u-s-treasury-advances-genius-act-bessent-flags-stablecoin-growth/
