US Treasury Seeks Public Input on Landmark 'Genius Act' Crypto Legislation

The U.S. Department of the Treasury is moving rapidly to establish clear regulatory guidelines for the cryptocurrency industry, with a particular focus on stablecoins. The government body has announced an open call for public comment on the landmark GENIUS Act, welcoming input from various stakeholders. This proposed rule aims to provide much-needed clarity on the licensing requirements for entities looking to issue stablecoins.

President Donald Trump officially signed the GENIUS Act into law in 2025. This significant piece of legislation empowers banks and other qualified entities to issue stablecoins, provided these digital tokens are adequately backed by robust assets such as U.S. Treasuries. Furthermore, the act mandates monthly disclosures of reserves, ensuring transparency and stability within the ecosystem. While Congress passed the law last year, the standard U.S. regulatory process requires agencies to draft and finalize more specific implementing rules, which typically includes a public comment period before these regulations officially take legal effect.

The overall effective date for the GENIUS Act is anticipated to be January 18, 2027. Following this, stricter prohibitions on the offer and sale of certain stablecoins are expected to come into effect from July 18, 2028. Treasury Secretary Scott Bessent emphasized the Treasury's swift action in implementing the framework. As of January 2027, the act stipulates that any person intending to issue a payment stablecoin in the United States must first obtain an appropriate federal or state license, underscoring a significant shift towards regulated issuance.

Secretary Bessent stated, “President Trump and Congress delivered the GENIUS Act, establishing a landmark framework and clear rules of the road for payment stablecoins, and Treasury is moving quickly to implement that framework.” He further added that the Treasury welcomes stakeholder input to ensure regulatory certainty, foster innovation and growth in America, cement the U.S. dollar's role as the world’s reserve currency, and maintain America’s position as the global crypto capital.

In its consultation with stakeholders, the Treasury has posed several critical questions to refine the implementing rules. These include whether key terms within the legislation are defined with sufficient clarity, precisely when a stablecoin should be considered “issued,” and what due diligence obligations digital asset service providers should uphold when relying on the compliance representations of a foreign issuer.

This push for stablecoin regulation is part of a broader effort by the U.S. to create comprehensive laws for the crypto industry. Concurrently, lawmakers had aimed for a vote on another crucial crypto market structure bill, the Clarity Act, this month, but it has been delayed until September. Secretary Bessent has previously urged lawmakers to pass the Clarity Act, a sentiment echoed by President Trump, who recently highlighted the necessity of such legislation for the U.S. to secure a leading position over China in the digital assets space. President Trump also noted an increase in the use of Bitcoin for payments.