Treasury requests comments on GENIUS Act

The Treasury Department issued a request for comment on its implementation of parts of the GENIUS Act stablecoin law.

Details: The Treasury Department said:

• Individuals and organizations should provide feedback on innovative methods, techniques, or strategies that financial institutions could use to detect illicit activity involving digital assets.

• Commenters may focus on application program interfaces, artificial intelligence, digital identity verification, and blockchain technology and monitoring.

• It will use public comments to inform research on the effectiveness, costs, privacy and cybersecurity risks, as required by the GENIUS Act.

Recent Advocacy: ICBA and other groups last week called on Congress to strike Section 16(d) of the GENIUS Act, which allows any state-chartered uninsured depository institution with a stablecoin subsidiary to perform traditional money transmission and custody activities nationwide through that subsidiary.

What It Means for Community Bankers: ICBA offers:

• A summary of the GENIUS Act for community bankers that includes insights on the regulatory framework for payment stablecoins, policies on bank issuance, and more.

• An on-demand community banker briefing on the GENIUS Act and other digital asset policy developments.

• A recent Main Street Matters blog post from ICBA President and CEO Rebeca Romero Rainey on what the law means for community banking, how ICBA has helped shape stablecoin policy, and the path forward.