What's Happening?
The Treasury Department has begun the rulemaking process for the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), which was signed into law by President Trump in July.
This act establishes a comprehensive federal regulatory framework for payment stablecoins, a type of digital asset designed to maintain a stable value. The Treasury has issued an advance notice of proposed rulemaking (ANPRM) to gather public input on various aspects of the forthcoming regulations. The ANPRM invites comments on 58 questions across six key areas, including stablecoin issuers, illicit finance, foreign payment stablecoin regimes, taxation, insurance, and economic data. Stakeholders are encouraged to submit their comments by November 4, 2025.
Why It's Important?
The GENIUS Act represents a significant shift in the regulation of digital assets in the United States, aiming to provide a clear and comprehensive framework for stablecoins. This move is crucial for ensuring consumer protection, financial stability, and maintaining U.S. leadership in the digital asset space. The rulemaking process will determine how these regulations are implemented, affecting a wide range of stakeholders, including stablecoin issuers, financial institutions, and businesses that may accept stablecoins as payment. The outcome of this process could influence the future of digital asset innovation and adoption in the U.S., as well as the country's competitive position in the global financial system.
What's Next?
Following the ANPRM, the Treasury Department is expected to issue one or more notices of proposed rulemaking (NPRs) that will outline specific regulatory language. Stakeholders, including potential stablecoin issuers and financial institutions, should prepare to engage in this process by providing feedback and staying informed about further developments. The rulemaking process will also involve other federal agencies, such as the Federal Reserve and the Office of the Comptroller of the Currency, which will adopt regulations related to licensing, regulation, and supervision of stablecoin issuers.
