WASHINGTON— The U.S. Treasury Department has issued a Request for Comment under the GENIUS Act, advancing the Administration’s push for the responsible growth of digital assets laid out in Executive Order 14178 on “Strengthening American Leadership in Digital Financial Technology.”
The law establishes a regulatory framework for stablecoin issuers, and Treasury’s call for feedback marks the next step in meeting its obligations under section 9(a) of the Act, Treasury said.
The agency is seeking input from individuals and organizations on how financial institutions are using—or could use—emerging tools to detect illicit activity tied to digital assets. Treasury said it is especially interested in feedback on application programming interfaces (APIs), artificial intelligence, digital identity verification, and blockchain monitoring.
Officials noted that while these innovations can strengthen defenses against illicit finance, they may also create new cost, privacy, and cybersecurity challenges for institutions. Treasury said it will use the comments to guide research on the effectiveness and risks of these tools, as required by the GENIUS Act.
As provided in Section 9(a) of the GENIUS Act, members of the public should submit comments within 60 days of publication in the Federal Register by October 17. Comments responding to this request will be publicly viewable at www.regulations.gov.