Treasury Seeks Public Input on GENIUS Act Stablecoin Regulations

The US Treasury is seeking public input on the GENIUS Act, landmark legislation aimed at regulating stablecoins. The act allows banks and other entities to issue stablecoins backed by assets like U.S. Treasuries, provided they disclose their reserves monthly.

Treasury Secretary Scott Bessent stated that the government body is moving quickly to implement the GENIUS Act's framework, which is expected to take effect on January 18, 2027. The stricter offer and sale prohibition of stablecoins will be prohibited from July 18, 2028.

The Treasury is inviting stakeholders to provide input on key terms and due diligence obligations for digital asset service providers relying on foreign issuers' compliance representations. This consultation comes as the US strives to craft laws regulating the crypto industry.