Treasury seeks comments on implementing GENIUS Act

The Treasury Department issued an advance notice of proposed rulemaking seeking public comment related to its implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.

Details: The Treasury Department said:

• The GENIUS Act tasks Treasury with issuing regulations that encourage innovation in payment stablecoins while providing an appropriately tailored regime to protect consumers, mitigate potential illicit finance risks, and address financial stability risks.

• The ANPRM invites the public to offer by Oct. 20 comments, data, and other information that may be useful for Treasury to consider, but it does not implement new requirements under the GENIUS Act.

• The ANPRM builds upon the Request for Comment on Innovative Methods to Detect Illicit Activity Involving Digital Assets issued on Aug. 18, which remains open for comment until Oct. 17.

Recent Advocacy: ICBA and other groups last month 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 Main Street Matters blog post from ICBA President and CEO Rebeca Romero Rainey on what the law means for community banking and how ICBA has helped shape stablecoin policy.