Treasury Opens Crucial Comment Period to Shape GENIUS Act into Landmark Stablecoin Regulation

Regulators finally wake up to the stablecoin revolution—now they want your help drafting the rules.

The Playing Catch-Up Game

Washington's scrambling to regulate what crypto natives built years ago. The GENIUS Act represents their latest attempt to put guardrails on a $150B market that's been operating just fine without their permission.

Your Voice Actually Matters

For once, bureaucrats are asking before legislating. Industry players get 60 days to shape policies that could make or break dollar-pegged digital assets. Smart money's already drafting comments that'll protect innovation while satisfying the compliance crowd.

The Irony of It All

Traditional finance spends decades building unstable systems, then frets about stablecoins. Meanwhile, DeFi protocols process billions without a single bailout—but sure, let's focus on regulating the stable part.

Illicit finance and oversight

The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, signed into law earlier this year, was the first major U.S. crypto legislation.

The law directs Treasury and other agencies to establish standards for issuers, clarify tax treatment, and enforce anti-money laundering and sanctions compliance.

Treasury officials highlighted that the rules must balance state and federal oversight while building mechanisms to detect illicit finance. The notice follows a separate request for input last month focused on anti-money laundering risks in digital assets.

The public comment period also covers whether additional clarity is needed for reserve asset custody, how prohibitions on issuers should be structured, and how international frameworks should interact with U.S. regulations.

Political and market context

Republicans in Congress and federal regulators aligned with President Donald TRUMP have pressed for rapid rulemaking to position the United States as a global hub for digital finance.

Lawmakers are also advancing a broader market structure bill, the Digital Asset Market Clarity Act, which has cleared the House and is under Senate discussion.

Meanwhile, the industry is monitoring the economic backdrop, and some have raised concerns over whether it will continue to grow at its current pace.

JPMorgan analysts recently cautioned that growth in stablecoins may plateau unless the overall crypto market expands, warning that new entrants could cannibalize one another if demand remains flat.