What Treasury Is Asking For
The U.S. Treasury Department opened an advance notice of proposed rulemaking to implement the GENIUS Act, the country’s new federal framework for payment stablecoins. Regulators want comments by October 20 and plan to use the feedback to shape formal proposals. If you operate a wallet, exchange, or issue a token, this is your chance to weigh in before the rulebook gets written.
Treasury’s request focuses on how to supervise issuers, what to disclose, which reserves count, and how to block illicit finance without killing innovation. The agency also flagged that the notice is the start of a broader, multi-agency process that will translate the statute into day-to-day operating standards.
The Law Behind The Notice
President Donald Trump signed the GENIUS Act on July 18. The law requires full reserve backing with high-quality liquid assets and regular public reporting. It also directs Treasury and banking regulators to define key technical details through rulemaking. Those details will determine how stablecoin issuers manage reserves, publish audits and attestations, and align with state and federal oversight.
Treasury is testing ideas across technology, market integrity, and cross-border activity. Expect pointed questions about:
- How to use APIs, blockchain analytics, AI, and digital identity tools to combat illicit finance
- What reserve assets should qualify, how often issuers must disclose, and how to structure attestations and audits
- How to treat cross-border issuance and redemptions while keeping market integrity and national security in balance
Market analysts say the answers could set the tone for how strict operations become for major issuers like Circle and Tether. Rules that favor short-dated Treasurys could lift demand for T-bills and influence front-end funding markets. Meanwhile, clarity on preemption, audits, and transition timelines would shape how legacy tokens move into the new regime.
Why It Matters For Crypto And Markets
This ANPRM is an early look at the operational playbook for U.S. dollar-linked tokens. Clear guardrails could pull more stablecoin activity into the regulated core of U.S. finance. However, tighter reserve rules and disclosures may raise compliance costs and alter yields, liquidity, and product design across the stablecoin sector. Treasury’s outreach signals an attempt to balance fast, dollar-denominated payments with national-security priorities—an equilibrium that will define how the market grows from here.
