Treasury Seeks Public Input on GENIUS Act Stablecoin Regulations

The US Treasury is seeking public input on implementing the GENIUS Act, a landmark crypto legislation signed in 2025 by President Donald Trump. The law allows banks and other entities to issue stablecoins backed by assets like U.S. Treasuries, provided they meet certain conditions and provide monthly disclosures of their reserves.

The Treasury's proposed rule aims to clarify who must hold federal or state licenses to issue payment stablecoins. Stakeholders are invited to comment on the definition of issuance, issuer due diligence, and monthly reserve disclosures for stablecoins backed by assets like U.S. Treasuries.

The consultation comes as the US government works to regulate the crypto industry. The GENIUS Act is expected to take effect on January 18, 2027, with stricter sale prohibitions from July 18, 2028.