Treasury Seeks Public Input on GENIUS Act Implementation

The U.S. Treasury is asking the public to weigh in on how it should implement the GENIUS Act, the country’s first law written specifically for stablecoins. Passed earlier this year with strong political backing, the legislation lays the groundwork for regulating payment stablecoins but leaves many details unresolved. Treasury officials now want industry leaders, critics, and everyday stakeholders to provide feedback on questions ranging from taxation to foreign issuers before drafting formal rules.

What Is the GENIUS Act?

The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act is the first crypto-specific law passed in the United States. Enacted this past summer with bipartisan support and signed by President Donald Trump, the law aims to create a regulatory framework for payment stablecoins. Its core goal is to balance innovation with consumer protection, financial stability, and safeguards against illicit finance.

Treasury’s Role in Shaping the Rules

The U.S. Treasury Department has been tasked with drafting regulations under the GENIUS Act. Officials say they want to design guidelines that encourage growth in the stablecoin sector while setting up a tailored compliance regime. To do that, Treasury is seeking feedback from both critics and industry participants. The public comment period will remain open until October 20, giving stakeholders a chance to shape how the law is applied.

Key Questions Treasury Wants Answered

Several open issues remain as Treasury prepares its proposal:

• Taxation: The GENIUS Act does not directly address how stablecoins should be treated under federal income tax law, leaving interpretation to the IRS.
• Foreign Issuers: The law includes a potential pathway for foreign stablecoin issuers to operate in the U.S., though the timeline and requirements are not yet clear.
• Marketing Rules: Treasury is considering whether restrictions on advertising and promotion should be part of the framework.
• Federal vs. State Oversight: Regulators must decide how to balance state authority with a consistent national regime.
• AML and Sanctions: Application of the Bank Secrecy Act (BSA), anti-money laundering (AML) rules, and sanctions obligations remains a central concern.

Why Industry Feedback Matters

Stablecoins sit at the intersection of payments, banking, and crypto markets, meaning regulatory decisions could reshape the future of digital finance. Industry insiders are expected to highlight how different approaches might affect liquidity, innovation, and compliance costs. Critics, on the other hand, are likely to stress consumer risks and systemic vulnerabilities.

Political Context Behind GENIUS

The GENIUS Act passed both Republican-led chambers of Congress in July 2025 and was quickly signed into law by President Trump. The administration has pushed for stablecoin legislation as part of a broader effort to reform the U.S. regulatory environment and signal openness to digital assets.

What Comes Next?

After the October 20 deadline, Treasury will review public input and begin shaping formal rules. Those regulations will set the tone for how payment stablecoins operate in the U.S.—determining not only tax and compliance obligations but also whether the country positions itself as a leader or a laggard in the global digital currency race.