Treasury opens comment period to shape GENIUS Act into stablecoin regulation
The U.S. Treasury Department launched a proper course of to rework the newly enacted GENIUS Act into a framework of laws for stablecoins, inviting the general public and crypto trade to weigh in on key compliance points.
The division opened an advance notice of proposed rulemaking on Sept. 18, step one in gathering suggestions earlier than drafting detailed guidelines.
The transfer provides companies, policymakers, and the general public till Oct. 20 to reply to dozens of questions, together with how issuers ought to custody reserves and the way U.S. oversight compares to rising international regimes.
Illicit finance and oversight
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, signed into legislation earlier this 12 months, was the first major U.S. crypto legislation.
The legislation directs Treasury and different companies to set up requirements for issuers, make clear tax therapy, and implement anti-money laundering and sanctions compliance.
Treasury officers highlighted that the principles should stability state and federal oversight whereas constructing mechanisms to detect illicit finance. The discover follows a separate request for enter final month centered on anti-money laundering dangers in digital property.
The public comment period additionally covers whether or not further readability is required for reserve asset custody, how prohibitions on issuers ought to be structured, and the way worldwide frameworks ought to work together with U.S. laws.
Political and market context
Republicans in Congress and federal regulators aligned with President Donald Trump have pressed for fast rulemaking to place the United States as a worldwide hub for digital finance.
Lawmakers are additionally advancing a broader market construction invoice, the Digital Asset Market Clarity Act, which has cleared the House and is underneath Senate dialogue.
Meanwhile, the trade is monitoring the financial backdrop, and a few have raised issues over whether or not it should proceed to grow at its current pace.
JPMorgan analysts not too long ago cautioned that progress in stablecoins could plateau until the general crypto market expands, warning that new entrants might cannibalize each other if demand stays flat.
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