#BreakingCryptoNews

The US Treasury is seeking public feedback on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, focusing on detecting illicit activity in digital assets. This move is part of implementing the legislation signed into law by President Trump on July 18, 2025.

*Key Aspects of the GENIUS Act:*

- *Regulatory Framework*: Establishes a comprehensive framework for payment stablecoins, including registration, reserve requirements, and custodial safeguards.

- *Consumer Protection*: Prioritizes consumer protection, fostering innovation, and strengthening the US dollar's status as a global reserve currency.

- *Reserve Requirements*: Mandates 1:1 backing of stablecoins with liquid assets, such as US dollars or Treasuries.

- *Disclosure and Auditing*: Requires monthly public disclosures and annual audits to ensure transparency and accountability.

*Public Feedback:*

- The Treasury Department invites individuals and organizations to provide feedback on innovative methods to detect illicit activity involving digital assets.

- The focus areas include¹:

- Application program interfaces (APIs)

- Artificial intelligence (AI)

- Digital identity verification

- Blockchain technology

- The deadline for submitting comments is October 17, 2025.

*Implications:*

- The GENIUS Act sets a precedent for federal engagement with blockchain technologies and lays the foundation for future reforms in areas like custody, token classification, and secondary market trading.

- The legislation allows for the issuance of special-purpose banking charters for "Federal Qualified Nonbank Payment Stablecoin Issuers," enabling technology firms to become licensed stablecoin issuers.

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