Deadline Set for October 17
The US Treasury Department has opened a public comment period for feedback on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS Act), signed into law by President Donald Trump in July 2025. Comments will remain open until October 17, focusing on new strategies to combat illicit finance risks in the digital asset sector.
Focus on Detecting Illicit Activity
According to the Treasury’s notice, individuals, companies, and industry groups are invited to share ideas on innovative methods to monitor and mitigate criminal activity involving digital assets. Areas of interest include:
- Money laundering prevention in crypto transactions
- Application programming interfaces (APIs) for oversight
- AI-driven monitoring tools
- Digital identity verification solutions
- Blockchain-based surveillance and transparency mechanisms
Treasury Secretary Scott Bessent emphasized the importance of public input, calling it “essential to securing American leadership in digital assets.” The department will compile responses and submit reports to both the Senate Banking Committee and the House Financial Services Committee.
Implementation Timeline
The GENIUS Act is designed to regulate payment stablecoins and is expected to go into effect 18 months after its signing (July 18, 2025) or 120 days after the Treasury and Federal Reserve finalize regulations, whichever comes first. This timeline suggests that the rollout is structured to avoid becoming a key political issue ahead of the 2026 midterm elections.
The GENIUS Act is one of three major crypto bills advanced under the Republican-controlled Congress as part of July’s “crypto week”:
- GENIUS Act – Stablecoin regulation and oversight
- Digital Asset Market Clarity (CLARITY) Act – Market structure rules
- Anti-CBDC Surveillance State Act – Limiting federal authority on central bank digital currencies
The CLARITY Act and Anti-CBDC bill are currently awaiting Senate review. Senate Banking Committee leadership has signaled it will prioritize its own version of the CLARITY Act by October 2025, highlighting the push for broader regulatory clarity in the digital asset sector.
Why It Matters
The GENIUS Act represents one of the first comprehensive stablecoin laws in the United States, aiming to balance innovation and security. By requesting public feedback, the Treasury is encouraging collaboration between regulators, industry leaders, and technologists to create effective safeguards against illicit use of stablecoins.
As stablecoins become increasingly central to global payments and DeFi ecosystems, the outcome of this consultation will play a critical role in shaping future crypto regulation in the US.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.