On September 19, the U.S. Department of the Treasury issued an Advance Notice of Proposed Rulemaking (ANPRM) seeking public input on the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This ANPRM builds upon the Request for Comment on Innovative Methods to Detect Illicit Activity Involving Digital Assets issued by Treasury on August 18, which remains open for comment until October 17, 2025.
The GENIUS Act mandates that Treasury develop regulations that promote innovation in payment stablecoins, balancing this with illicit finance risk, consumer protection and financial stability. The ANPRM invites public comments on various aspects of these coming regulations, including regulatory clarity, anti-money laundering (AML) and sanctions obligations, tax issues, the balance between state and federal oversight, and other areas. Stakeholders are encouraged to submit comments by October 20, 2025, providing an opportunity for the public to influence the regulatory framework governing permitted payment stablecoins.
The GENIUS Act outlines a comprehensive framework for permitted payment stablecoin regulation, including reserve requirements, marketing restrictions, and penalties for non-compliance. Only permitted payment stablecoin issuers (PPSIs) can issue stablecoins in the U.S., with certain exceptions for foreign issuers meeting specific criteria. Treasury is tasked with implementing regulations to prevent illicit finance activities related to these stablecoins, including AML and sanctions compliance, and seeks input on how these regulations should be structured. Additionally, Treasury will assess foreign regulatory regimes for comparability with U.S. standards, potentially allowing foreign-issued stablecoins to be sold in the U.S. under certain conditions. The ANPRM also solicits comments regarding taxation, insurance, and economic data related to stablecoins, seeking insights into the costs and benefits of the proposed regulations.
Key Questions for Public Input:
The ANPRM solicits public comments on six main categories: stablecoin issuers and service providers, illicit finance, foreign payment stablecoin regimes, taxation, insurance, and economic data. Some of these questions include:
- What topics (and associated penalties) should be addressed in regulations to effectuate § 3(a)(which makes it unlawful for any person other than a permitted payment stablecoin issuer to issue a payment stablecoin in the United States?
- Should Treasury issue regulations providing for safe harbors from § 3(a)? If so, what factors should Treasury consider in adopting these regulations?
- Are any regulations necessary to clarify the scope of the reserve requirements in § 4(a) (Standards for the Issuance of Payment Stablecoins) or the requirement to publish the composition of the reserves?
- Is the scope of the term “payment stablecoin” sufficiently clear as defined in the GENIUS Act? If not, what additional clarification should be provided?
- How should payment stablecoins not issued by a PPSI be treated for accounting purposes under § 3(g)(1) (i.e., other than being treated as cash or as a cash equivalent for accounting purposes)?
- What should Treasury consider when promulgating regulations implementing § 4(a)(5) (i.e., treatment as a financial institution for purposes of the Bank Secrecy Act and sanction laws), including AML and sanctions programs, monitoring and reporting suspicious activity, and customer identification and due diligence?
- As Treasury identifies factors for determining whether a foreign jurisdiction has a regulatory and supervisory regime that is comparable to the requirements established under the GENIUS Act, what specific factors should Treasury consider, including factors that should disqualify a foreign jurisdiction from being determined to be comparable?
These questions, among others, aim to gather comprehensive feedback from stakeholders to ensure that the regulatory framework effectively addresses the complexities of stablecoin innovation and its associated risks.