Treasury opens comment period to shape GENIUS Act into stablecoin regulation

The U.S. Treasury Department launched a ceremonial process to alteration the newly enacted GENIUS Act into a model of regulations for stablecoins, inviting the nationalist and crypto manufacture to measurement successful connected cardinal compliance issues.

The section opened an advance notice of projected rulemaking connected Sept. 18, the archetypal measurement successful gathering feedback earlier drafting elaborate rules.

The determination gives businesses, policymakers, and the nationalist until Oct. 20 to respond to dozens of questions, including however issuers should custody reserves and however U.S. oversight compares to emerging overseas regimes.

Illicit concern and oversight

The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, signed into instrumentality earlier this year, was the first large U.S. crypto legislation.

The instrumentality directs Treasury and different agencies to found standards for issuers, clarify taxation treatment, and enforce anti-money laundering and sanctions compliance.

Treasury officials highlighted that the rules indispensable equilibrium authorities and national oversight portion gathering mechanisms to observe illicit finance. The announcement follows a abstracted petition for input past period focused connected anti-money laundering risks successful integer assets.

The nationalist remark play besides covers whether further clarity is needed for reserve plus custody, however prohibitions connected issuers should beryllium structured, and however planetary frameworks should interact with U.S. regulations.

Political and marketplace context

Republicans successful Congress and national regulators aligned with President Donald Trump person pressed for accelerated rulemaking to presumption the United States arsenic a planetary hub for integer finance.

Lawmakers are besides advancing a broader marketplace operation bill, the Digital Asset Market Clarity Act, which has cleared the House and is nether Senate discussion.

Meanwhile, the manufacture is monitoring the economical backdrop, and immoderate person raised concerns implicit whether it volition proceed to grow astatine its existent pace.

JPMorgan analysts precocious cautioned that maturation successful stablecoins whitethorn plateau unless the wide crypto marketplace expands, informing that caller entrants could cannibalize 1 different if request remains flat.

The station Treasury opens remark play to signifier GENIUS Act into stablecoin regulation appeared archetypal connected CryptoSlate.