TLDR
- The U.S. Treasury is seeking public comments on stablecoin regulations under the GENIUS Act.
- The GENIUS Act aims to promote innovation in payment stablecoins while ensuring consumer protection.
- The Treasury is considering feedback on issues like foreign issuers and marketing prohibitions.
- The public comment period on the GENIUS Act ends on October 20.
- The Treasury is also asking for input on tax treatment and applying financial regulations to stablecoins.
The U.S. Treasury Department is asking for public input on its implementation of the GENIUS Act. This new legislation, passed in the summer, focuses on stablecoins. The Treasury wants feedback to help shape regulations for payment stablecoins. The department is particularly looking for comments from both critics and industry insiders. The public comment period ends on October 20.
GENIUS Act Aims to Promote Innovation While Protecting Consumers
The GENIUS Act mandates the Treasury to create regulations for stablecoins. These regulations should encourage innovation in the payment stablecoin sector.
At the same time, they need to protect consumers and reduce illicit finance risks. Treasury officials emphasized the balance between fostering growth and ensuring financial stability. They are focusing on how to protect both consumers and the overall financial system.
Unresolved Questions Around Foreign Issuers and Marketing Prohibitions
The GENIUS Act leaves several issues open for interpretation. One of the key points is the potential for foreign issuers to offer stablecoins in the U.S. The law does not specify when this might occur.
The Treasury is seeking public input on this issue, along with other key questions. These include whether to introduce marketing prohibitions and how to balance state and federal oversight.
The GENIUS Act does not address the tax treatment of payment stablecoins. This leaves room for the IRS to interpret how the law applies to taxes. The Treasury has also asked for input on applying existing financial regulations like the Bank Secrecy Act (BSA). Officials are considering how to enforce anti-money laundering (AML) and sanctions obligations under the new law.
