The United States Treasury Department has officially requested public comment on the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This legislation, passed over the summer, represents the first crypto-specific law enacted in the U.S., and the Treasury is now gathering information to shape the final regulations.
Key Takeaways
- The U.S. Treasury Department is asking for public feedback to help create rules for the new GENIUS Act.
- This is the first piece of legislation in the United States that specifically targets cryptocurrencies.
- Key areas needing clarification include tax treatment, rules for foreign issuers, and anti-money laundering (AML) compliance.
- The public comment period is set to close on October 20, 2025.
Treasury Initiates Rulemaking Process
The Treasury Department is taking the first formal steps to translate the GENIUS Act from law into functional regulation. On Thursday, the agency issued a press release inviting input from a wide range of stakeholders, including industry participants, consumer advocates, and critics of the digital asset space.
The goal is to gather data and diverse perspectives that will inform the development of a formal regulatory proposal. According to officials, the feedback will be crucial in creating a balanced framework.
What is the GENIUS Act?
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act was passed by the U.S. Congress in July 2025. It received backing from President Donald Trump, who advocated for stablecoin legislation to be signed into law by August as part of a broader regulatory reform initiative. It is the first dedicated crypto law in the nation.
Balancing Innovation and Consumer Protection
In its official announcement, the Treasury outlined its primary objectives for implementing the new law. The department aims to create a system that fosters growth in payment stablecoins while simultaneously protecting users and the financial system.
"The GENIUS Act tasks Treasury with issuing regulations that encourage innovation in payment stablecoins while also providing an appropriately tailored regime to protect consumers, mitigate potential illicit finance risks, and address financial stability risks," Treasury officials stated.
This statement highlights the dual mandate the agency is working to fulfill: supporting technological advancement while implementing strong safeguards against financial crime and market instability.
Key Questions for Public Comment
The Treasury's request for information highlighted several critical areas where the GENIUS Act requires further clarification. These open questions are central to how the stablecoin market will operate in the United States moving forward.
First Crypto-Specific Law
The GENIUS Act is a landmark piece of legislation, marking the first time the U.S. has enacted a law specifically designed to regulate a segment of the cryptocurrency market. Its implementation will set a precedent for future digital asset regulation.
Tax Treatment of Stablecoins
A major point of ambiguity is the federal income tax status of payment stablecoins. The Treasury noted that the GENIUS Act does not specify how these assets should be characterized for tax purposes. This leaves significant room for the Internal Revenue Service (IRS) to interpret the law, and the public's input could influence that direction.
Rules for Foreign Issuers
The legislation includes a provision that could potentially allow stablecoins issued by foreign companies to be offered in the United States. However, the exact conditions and timeline for this are not defined. The Treasury is seeking feedback on how to structure this process, which could have significant implications for the global stablecoin market.
Oversight and Compliance Obligations
The Treasury is also looking for guidance on several other regulatory aspects. These include:
- Marketing Prohibitions: Whether there should be specific restrictions on how stablecoins can be advertised to consumers.
- Jurisdictional Balance: How to effectively balance oversight responsibilities between state-level regulators and federal agencies.
- Financial Crime Prevention: Where and how to apply critical regulations like the Bank Secrecy Act (BSA), anti-money laundering (AML) rules, and sanctions obligations to stablecoin issuers and service providers.
Next Steps in the Regulatory Process
The public comment period will remain open until October 20, 2025. After this deadline, the Treasury will analyze the submissions to help draft its formal proposed rules. This initiative follows a separate request from the department last month for comments related to detecting the illicit use of digital assets, indicating a broad effort to establish a comprehensive regulatory framework.
The outcome of this process will have a lasting impact on the digital asset industry in the United States. The final regulations will determine the operational landscape for stablecoin issuers, the level of protection for consumers, and the role of the U.S. in the global digital economy.
