US Treasury calls for public comment on GENIUS stablecoin bill
News Summary
The U.S. Treasury Department has initiated a call for public comments regarding the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which was signed into law by President Donald Trump in July 2025. The Treasury is seeking feedback on innovative methods, techniques, or strategies to detect and mitigate illicit finance risks involving digital assets, with a deadline of October 17. Treasury Secretary Scott Bessent emphasized via social media that this move is essential for implementing the law and securing American leadership in digital assets. Following public comments, the Treasury will research proposed methods and submit reports to the Senate Banking Committee and House Financial Services Committee. The act is expected to go into effect 18 months after its signing or 120 days after the Treasury and Federal Reserve finalize regulations. The GENIUS Act is one of the first crypto-related laws passed under the Trump administration, and its implementation timeline suggests it may be less likely to become a significant campaign issue for candidates in the 2026 midterm elections. In addition to the GENIUS Act, the House also passed the Digital Asset Market Clarity (CLARITY) Act and the Anti-CBDC Surveillance State Act with bipartisan support during "crypto week" in July; these bills have now been sent to the Senate.
Background
In July 2025, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act was signed into law by President Donald Trump. This legislation aims to regulate payment stablecoins and mandates the Treasury to solicit public comments on detecting and mitigating illicit finance risks in digital assets. It marks one of the first crypto-related laws passed under the Republican-controlled Congress during the Trump administration. During a “crypto week” in July, the House also passed the Digital Asset Market Clarity (CLARITY) Act and the Anti-CBDC [Central Bank Digital Currency] Surveillance State Act, both of which have been sent to the Senate for consideration. The Senate Banking Committee has indicated its intention to prioritize crypto market structure and pass its version of the CLARITY Act by October.
In-Depth AI Insights
Is the U.S. government's stablecoin regulatory strategy solely aimed at combating illicit finance? While the Treasury's call for comments superficially targets illicit finance, a deeper motivation likely lies in solidifying U.S. global leadership in digital assets and finding new pillars for dollar hegemony. By establishing a robust, regulated stablecoin framework, the U.S. aims to attract more crypto innovation while containing risks, thereby securing a strong position in global digital finance competition. What are the strategic implications of the GENIUS Act's passage for the long-term status of the U.S. dollar as a global reserve currency? The GENIUS Act's passage can be seen as a critical step for the U.S. to entrench the dollar's position in the digital age. By ensuring the dominance of USD-backed stablecoins in global digital transactions, the U.S. seeks to extend its monetary influence from traditional finance into the emerging digital economy. This not only helps maintain the dollar's international usage but also sets standards for future digital trade and cross-border payments, countering potential challenges from digital currency systems led by other nations. How might the act's implementation timeline influence the competitive landscape and investment opportunities within the cryptocurrency industry? The act's implementation timeline—expected 18 months after signing or 120 days post-final regulations—provides market participants ample time to adjust and prepare. This could favor well-capitalized, compliance-ready traditional financial institutions and large tech companies, which are better positioned to adapt to new regulatory demands and potentially expand market share through partnerships with regulated stablecoin issuers. For smaller or decentralized projects, compliance costs and uncertainties may pose challenges, accelerating industry consolidation and potentially channeling capital towards projects that align with the new regulatory framework.