The U.S. Department of the Treasury has issued a Request for Comment as mandated by the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This action is part of ongoing efforts to support responsible growth and use of digital assets, in line with Executive Order 14178 on “Strengthening American Leadership in Digital Financial Technology.”
According to the Treasury, this request fulfills an obligation under section 9(a) of the GENIUS Act, which establishes a regulatory framework for stablecoin issuers in the United States. The GENIUS Act and Executive Order 14178 are intended to promote U.S. leadership in digital assets while also enhancing national security.
The comment period allows individuals and organizations to provide input on methods that regulated financial institutions currently use or could adopt to detect illicit activity involving digital assets. Areas of interest include application program interfaces, artificial intelligence, digital identity verification, and blockchain technology 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,” according to the statement from Treasury.
Members of the public have 60 days from publication in the Federal Register—until October 17—to submit their comments at www.regulations.gov. All responses will be made publicly available through that site.
