U.S. Treasury Advances GENIUS Act Regulations for Stablecoins

The U.S. Treasury Department has initiated a public comment period to gather information on the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS) Act.
This process, called "advance notice of proposed rulemaking," seeks input on issues like issuer prohibitions, sanctions obligations, anti-money laundering compliance, state vs. federal oversight, and tax matters.
The public and crypto businesses can submit feedback until October 20. The Treasury posted questions regarding reserve asset custody requirements and comparisons to foreign regulatory regimes.
The GENIUS Act is significant as the first major U.S. crypto legislation, and efforts continue to establish broader regulations through the Digital Asset Market Clarity Act.
Republicans in Congress aim to expedite the creation of favorable crypto regulations per President Trump's directives.
JP Morgan noted that the stablecoin sector needs overall crypto market growth to avoid competition among new stablecoins.