U.S. President Donald Trump signed the (GENIUS Act) last month, establishing a regulatory framework for stablecoins and imposing a 'tightening grip' on illegal activities involving cryptocurrencies. To this end, the U.S. Department of the Treasury publicly solicited opinions on Monday, inviting various sectors to propose 'innovative or new methods, technologies, and strategies' to assist financial institutions in enhancing their ability to detect suspicious transactions such as money laundering.
According to the announcement, the scope of consultation covers application programming interfaces (APIs), artificial intelligence (AI), digital identity verification, and blockchain technology, among others. The Treasury stated that the deadline for feedback is October 17, and the related research results will be submitted to the Senate Banking Committee and the House Financial Services Committee, potentially pushing forward regulatory details in the future.
Treasury Secretary Scott Bessent stated on the social media platform X: 'Stablecoins will expand the channels of U.S. dollars worth billions globally and will also boost demand for U.S. Treasury bonds. This is a win-win situation for all participants: stablecoin users, stablecoin issuers, and the U.S. Treasury will all benefit.'
(GENIUS Act) took effect on July 18 this year and is the first federal law in the U.S. specifically targeting stablecoins. It requires stablecoins to be 'fully backed' by U.S. dollars or equivalent high-liquidity assets and stipulates that issuers of stablecoins with a market value exceeding $50 billion must undergo annual audits. At the same time, it also establishes regulatory norms for foreign-issued stablecoins.
(GENIUS Act) has now officially entered a critical stage of implementation. According to U.S. financial regulatory practices, new laws often require multiple layers of enforcement by various federal regulatory agencies before they can truly operate. In the future, agencies including the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) will gradually formulate more detailed policy guidelines for the regulatory framework concerning stablecoin issuers.
However, the (GENIUS Act) is only the first piece of the two major legislative puzzles in the U.S. cryptocurrency industry and is not the most significant piece. What the market is truly holding its breath for is another regulatory bill concerning the broader digital asset market.
The U.S. House of Representatives recently passed the (Digital Asset Market Clarity Act) with bipartisan support, but as the Senate's summer recess has ended, the bill will now be led by the Senate, which is bound to differ slightly from the House version in terms of stance and details.
"Strengthening the crackdown on illegal cryptocurrency activities! U.S. Treasury solicits opinions and seeks innovative solutions" this article was first published in (Blockkey).