Public Engagement on US Stablecoin Regulation
Invitation for Public Feedback on the GENIUS Act
The United States Department of the Treasury has initiated a public consultation process concerning the implementation of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. This legislation, enacted in July, sets out a regulatory framework specifically for stablecoin issuers, marking a significant step in the US’s approach to digital currency regulation.
This initiative for public input coincides with the Treasury’s previous Request for Comment on detecting illicit activities associated with payment stablecoins. This earlier request sought to explore innovative technologies capable of identifying and mitigating risks linked to these dollar-pegged digital assets.
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Deadline for Public Input on Stablecoin Regulation
On Thursday, September 18, the US Treasury released an Advance Notice of Proposed Rulemaking (ANPRM), inviting public comments on the GENIUS Act’s implementation strategy. This call aims to engage a broad array of stakeholders, encouraging them to share insights and data that could influence the enactment of this law.
The Treasury’s release highlighted the GENIUS Act’s objectives: fostering innovation in payment stablecoins while establishing a regulatory framework that ensures consumer protection, mitigates risks of illicit finance, and addresses concerns related to financial stability. Specific areas for public input include clarifications on reserve asset requirements and comparisons with foreign regulatory frameworks for payment stablecoins.
Additional topics for discussion cover marketing restrictions, the balance between state and federal oversight, and the application of regulations such as the Bank Secrecy Act, anti-money laundering policies, and sanctions obligations. Stakeholders are encouraged to submit their feedback within 30 days of the notice’s publication in the Federal Register.
Upcoming Legislative Developments in the Crypto Market
The formalization of the GENIUS Act represents a pivotal advancement in the US’s regulatory approach to the cryptocurrency sector. As part of ongoing legislative efforts, the US Senate plans to vote on the Responsible Financial Innovation Act 2025, a bill focused on the structure of the crypto market, by the end of September.
This proposed legislation aims to delineate the roles of various financial authorities in regulating and enforcing crypto-related policies. The Senate Banking Committee’s updated draft addresses crucial issues, such as defining the regulatory stance on blockchain developers and the classification of non-fungible tokens (NFTs) as securities.
These developments are poised to reshape the regulatory landscape for cryptocurrencies in the United States, reflecting a concerted effort to create a robust and clear framework that supports innovation while safeguarding financial stability.
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