The U.S. Treasury Department launched a formal process to transform the newly enacted GENIUS Act into a framework of regulations for stablecoins, inviting the public and crypto industry to weigh in on key compliance issues.
The department opened an advance notice of proposed rulemaking on Sept. 18, the first step in gathering feedback before drafting detailed rules.
The move gives businesses, policymakers, and the public until Oct. 20 to respond to dozens of questions, including how issuers should custody reserves and how U.S. oversight compares to emerging foreign regimes.
Illicit finance and oversight
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, signed into law earlier this year, was the first major U.S. crypto legislation.
The law directs Treasury and other agencies to establish standards for issuers, clarify tax treatment, and enforce anti-money laundering and sanctions compliance.
Treasury officials highlighted that the rules must balance state and federal oversight while building mechanisms to detect illicit finance. The notice follows a separate request for input last month focused on anti-money laundering risks in digital assets.
The public comment period also covers whether additional clarity is needed for reserve asset custody, how prohibitions on issuers should be structured, and how international frameworks should interact with U.S. regulations.
Political and market context
Republicans in Congress and federal regulators aligned with President Donald Trump have pressed for rapid rulemaking to position the United States as a global hub for digital finance.
Lawmakers are also advancing a broader market structure bill, the Digital Asset Market Clarity Act, which has cleared the House and is under Senate discussion.
Meanwhile, the industry is monitoring the economic backdrop, and some have raised concerns over whether it will continue to grow at its current pace.
JPMorgan analysts recently cautioned that growth in stablecoins may plateau unless the overall crypto market expands, warning that new entrants could cannibalize one another if demand remains flat.
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