U.S. Treasury Initiates Second Comment Period on Stablecoin Regulation under GENIUS Act

The U.S. Department of the Treasury has opened a second round of public consultations to shape its regulatory approach to payment stablecoins under the GENIUS Act. This initiative aims to refine the framework for implementing the act, ensuring it addresses key challenges and opportunities in the rapidly evolving digital financial space.

According to recent announcements, the Treasury is actively encouraging stakeholders to provide input during the 31-day comment period, which will also focus on mitigating potential risks, including those tied to illicit activities. This follows an initial round of consultations that began in August, with the first deadline for submissions concluding on October 17.

The GENIUS Act, signed into law in July by former President Donald Trump, serves as a cornerstone for payment stablecoin regulation in the U.S. It outlines a phased implementation timeline, stipulating that the framework will take effect 18 months after the act's enactment or 120 days following the release of final regulations by the Treasury and Federal Reserve, depending on which comes first. Consequently, the earliest rollout of the regulatory framework could occur by late 2026.

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Senate Advances Broader Regulatory Measures for Digital Assets Post GENIUS Act

In parallel with the Treasury's efforts, the U.S. Senate is ramping up legislative activity in the broader digital asset domain. Later this month, the Senate is slated to vote on its inaugural comprehensive digital asset legislation following the passage of the GENIUS Act. The legislation, colloquially named the "Responsible Financial Innovation Act," is designed to clearly delineate the enforcement roles and regulatory jurisdictions of U.S. financial agencies within the digital market.

This bill, spearheaded by key lawmakers such as Senator Cynthia Lummis, represents a pivotal step in defining the regulatory landscape for digital assets in the United States. The Senate Committee is expected to hold a formal vote on the act by the end of September, signaling a crucial juncture in determining how the U.S. approaches innovation and compliance in the burgeoning decentralized finance ecosystem.

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