The U.S. Department of the Treasury issued a Request for Comment required by the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or the GENIUS Act, which furthers the Trump Administration’s policy of supporting the responsible growth and use of digital assets, as outlined in Executive Order (E.O.) 14178 on “Strengthening American Leadership in Digital Financial Technology.” A press release indicates the request for comment fulfills Treasury’s obligation pursuant to section 9(a) of the GENIUS Act, which creates a comprehensive regulatory framework for stablecoin issuers in the United States.
The Genuis Act is U.S. legislation focused on the regulation of stablecoins, specifically “payment stablecoins”. It aims to create a comprehensive framework for the issuance, redemption, and oversight of these digital assets, prioritizing consumer protection, fostering innovation, and strengthening the US dollar’s status as a global reserve currency.
This request for comment offers the opportunity for interested individuals and organizations to provide feedback on innovative or novel methods, techniques, or strategies that regulated financial institutions use, or could potentially use, to detect illicit activity involving digital assets. In particular, Treasury asks commenters about application program interfaces, artificial intelligence, digital identity verification, and use of blockchain technology and monitoring.