Treasury Opens GENIUS Act for Public Input – October Deadline Set

• The U.S. Treasury opened public comments on GENIUS Act stablecoin regulations, and submissions are due by October 17.

• Treasury officials want feedback on AI and blockchain tools that can detect illegal digital asset activities.

• The GENIUS Act creates the first major federal framework for stablecoins backed by cash or Treasury securities.

The U.S. Department of the Treasury has launched a formal public consultation period for the GENIUS Act, seeking industry feedback on stablecoin oversight mechanisms. The department announced that comments must be submitted within 60 days of Federal Register publication, with an October 17 deadline. All submissions will be made publicly available at regulations.gov.

The consultation marks a critical phase in implementing comprehensive stablecoin regulation in America. The GENIUS Act establishes a comprehensive federal-state supervision and enforcement regime over payment stablecoin issuers, creating the first major regulatory framework for digital currencies backed by traditional assets.

Treasury Seeks Input on Anti-Illicit Finance Tools

The law requires the department to issue this request for comment and to use public comments to inform research on methods to detect illicit activity involving digital assets. The Treasury specifically requests feedback on emerging technologies designed to combat financial crimes.

These technologies include artificial intelligence systems for transaction monitoring, blockchain surveillance tools, digital identity verification protocols, and application programming interfaces for regulatory compliance. The consultation process will evaluate the effectiveness of these tools alongside their implementation costs, privacy implications, and cybersecurity vulnerabilities.

The feedback will inform Treasury research into detecting illegal activities involving digital assets. Officials plan to assess the practical benefits and potential risks of deploying advanced monitoring technologies across the stablecoin ecosystem.

Industry Leaders Welcome Regulatory Clarity

Treasury Secretary Scott Bessent characterized the GENIUS Act as essential for maintaining American leadership in digital finance. Bessent described stablecoins as representing “a revolution in digital finance” and noted that “the dollar now has an internet-native payment” system. The Secretary emphasized that stablecoins expand global access to dollar-denominated transactions while increasing demand for U.S. Treasury securities that back these digital currencies.

Circle CEO Jeremy Allaire praised the legislation as transformative for the financial sector. He described the act as more than regulatory compliance, viewing it as America’s commitment to technological innovation that enhances financial system safety, transparency, and inclusivity. Allaire credited bipartisan policymakers and industry developers for advancing stablecoin integration into mainstream finance.

The CEO highlighted external analysis describing the GENIUS Act as the “starting gun” for a new financial technology era. This perspective reflects years of industry lobbying efforts to bring stablecoins into traditional financial discussions and regulatory frameworks.

The GENIUS Act establishes a clear regulatory framework for “payment stablecoins,” digital assets backed by low-risk reserves like cash or Treasuries and designed to maintain a fixed value attached to a national currency, with mandatory 1:1 ratio backing requirements.