tl;dr
The US Treasury Department has requested public comments on innovative ways to detect and mitigate illicit finance risks related to digital assets, following the passage of the GENIUS Act, signed into law in July. Feedback is due by October 17 and will inform reports to Congress. The GENIUS Act, whi...
The US Treasury Department has issued a call for public comments following the passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, signed into law by President Donald Trump in July. The Treasury is seeking input from individuals and organizations on innovative methods to detect and mitigate illicit finance risks related to digital assets. This request for comments marks a crucial step in implementing the GENIUS Act, with a deadline set for October 17.
Treasury Secretary Scott Bessent emphasized the importance of this feedback in advancing American leadership in digital assets. After gathering public input, the Treasury will analyze proposed methods and submit detailed reports to both the Senate Banking Committee and the House Financial Services Committee. The GENIUS Act, designed to regulate payment stablecoins, is slated to take effect either 18 months after its signing on July 18 or 120 days after the Treasury and Federal Reserve finalize related regulations.
This timeline suggests a strategic delay in implementation, likely reducing the bill’s impact as a campaign issue during the 2026 midterm elections. Among the specific risks for which the Treasury solicited input are crypto-related money laundering activities. The Act also instructs the department to seek feedback on technology applications such as APIs, artificial intelligence, digital identity verification, and blockchain monitoring techniques.
The GENIUS Act is part of a broader legislative push by Congress into cryptocurrency regulation. In July, the Republican-led House of Representatives passed not only the GENIUS Act but also the Digital Asset Market Clarity (CLARITY) Act and the Anti-CBDC Surveillance State Act, all receiving bipartisan support. While these bills have moved to the Senate, that chamber remains in recess until September. Senate Banking Committee leadership has indicated a priority to advance crypto market structure legislation, aiming to pass their version of the CLARITY Act by October.