U.S. Treasury Launches Public Consultation on Stablecoin Regulation Under the GENIUS Act

The U.S. Treasury has opened a consultation process on the GENIUS Act, calling on the public to weigh in on rules for stablecoins. The goal is to strengthen America’s leadership in digital finance and accelerate the global adoption of stablecoins.

Open Debate on the Future of Stablecoins In its announcement, the Treasury emphasized that feedback from experts and the general public will be crucial in shaping the final framework. The discussion focuses on new tools to combat financial crime – ranging from artificial intelligence and blockchain monitoring systems to digital identity verification and API-based integrations. Comments are expected to assess not only the effectiveness of these technologies but also their impact on privacy, cybersecurity, and overall costs. The deadline for submissions is October 17, with all contributions to be published on regulations.gov.

GENIUS: A Landmark Framework for the Digital Dollar The GENIUS Act, signed earlier this year, establishes a comprehensive regulatory framework for stablecoin issuers operating in the United States. It builds on Executive Order 14178 signed by President Donald Trump, designed to secure U.S. dominance in digital finance. This move complements earlier initiatives that allowed cryptocurrency investments within 401k retirement plans.

Treasury Secretary: A “Win-Win-Win” for All Parties Treasury Secretary Scott Bessent described the regulation as a milestone for American finance. According to him, stablecoins not only expand access to the U.S. dollar but also increase demand for U.S. Treasury bonds that back them. Bessent highlighted that the GENIUS Act delivers benefits on multiple fronts: Users gain safe and regulated access to digital dollarsStablecoin issuers receive legal certainty and enhanced credibilityThe U.S. government strengthens oversight and boosts demand for Treasuries Circle and Allaire: America Is Ready for the Digital Era Jeremy Allaire, CEO of Circle, welcomed the Treasury’s move. In his view, this is more than financial regulation – it’s a clear signal that the U.S. is ready to lead the technological transformation. Allaire emphasized that stablecoins will improve transparency, security, and inclusivity across the financial system. In a follow-up statement, he called the GENIUS Act the “starting gun” of a new era in financial technology, one that links the internet with the global financial system. He noted that this progress reflects years of lobbying and persuasion that have brought stablecoins into the heart of political and economic debates.

What’s Next? The October deadline for public comments will determine the final shape of the framework. If regulators succeed in balancing innovation, privacy protection, and financial stability, the GENIUS Act could accelerate the adoption of stablecoins not only in the U.S. but worldwide.

#stablecoin , #GENIUSAct , #usd , #CryptoRegulation , #CryptoNews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“