The U.S. Treasury Department asked the public to weigh in on how to put the GENIUS Act into practice, the agency said in a press release late Thursday. The request covers data and comments as the Treasury prepares a formal rulemaking.
The law, the first crypto-specific bill to pass Congress this past summer, assigns the Treasury the task of shaping rules that both support payment stablecoin innovation and guard consumers against fraud, reduce illicit finance risks, and address threats to financial stability.
Treasury seeks detailed input
The comment period runs until Oct. 20 and includes views from critics and industry players. The bill won approval in July in both chambers and had backing from President Donald Trump.
Treasury officials want real-world information to help craft clear rules. They asked for data, research, and public views on how the law should be applied. The agency said it will use the comments to fine-tune its proposal before issuing regulations.
The aim is to strike a balance between letting new payment stablecoins grow and keeping risks in check.
Open questions on tax and foreign issuers
Officials noted several areas where the law leaves questions open. The GENIUS Act does not define how payment stablecoins should be treated for federal income tax. That gap may let the IRS decide later how to classify certain transactions.
The law also contains a clause that could allow foreign issuers to offer a stablecoin in the United States. Officials said the timing and conditions for that option are not yet clear.
Regulatory coverage and enforcement issues
Treasury asked for views on the scope of oversight, and officials want feedback on how to split duties between state regulators and federal agencies. They also asked where Bank Secrecy Act obligations and anti-money laundering rules should apply.
Sanctions enforcement is part of the mix as well, and the department has signalled it wants tailored rules that match the varied uses of payment stablecoins.
Last month, the Treasury issued a separate call for comment focused on detecting illicit uses of digital assets. That earlier step ties into the wider effort now under the GENIUS Act.
Together, the two comment drives show that officials are trying to learn from real cases as they write rules. The department said it values criticism as much as praise and is seeking a range of views.
Political backdrop and timing
The GENIUS Act won passage in July with support across both Republican-led chambers. President Donald Trump said he wanted stablecoin rules in place and aimed to have the law on his desk by August.
Now the rulemaking phase has begun, and Treasury’s timeline and the Oct. 20 comment deadline mean the formal proposal could follow once officials review submissions.
Why industry voices matter?
Companies that issue or handle stablecoins stand to be directly affected by the Treasury’s rules. Clear standards could ease the way for new payment products. At the same time, tougher safeguards may add costs for compliance.
Firms and trade groups that want the rules to favour innovation will likely submit technical data. Consumer advocates and compliance experts will push for strong protections.
After the comment window closes, Treasury will study the feedback. The agency will then draft proposed rules and publish them for further review. That draft will open another chance for public comment before any final rule is set.
How fast the process moves may depend on the number and complexity of the comments received. The Treasury’s call for input marks an early but critical stage in setting stablecoin rules in the United States.
The choices made now on tax, cross-border issuance, and anti-money laundering rules could shape the market for years.
Also Read: Senator Lummis Expects CLARITY And GENIUS Acts To Clear White House By Year-End