Treasury Seeks Comments on GENIUS Act Stablecoin Rules as Senate Weighs Market Structure, Bitcoin Reserve Bill

• GENIUS Act sets federal rules for payment stablecoins and triggers Treasury/Fed rulemaking.

• The Treasury opened a 31‑day public comment window focused on illicit activity and implementation specifics.

• Implementation is tied to rule finalization and an 18‑month countdown, likely pushing full effect into late 2026.

GENIUS Act stablecoin payments: Treasury opens a second 31‑day comment period — submit feedback now to shape rules and enforcement.

What is the GENIUS Act and how does it regulate stablecoin payments?

The GENIUS Act is U.S. federal legislation that creates a regulatory framework for payment stablecoins and directs the U.S. Department of the Treasury and the Federal Reserve to issue implementing rules. It focuses on consumer protections, reserve requirements, and anti‑money‑laundering safeguards for stablecoin payment systems.

How is the U.S. Treasury seeking public comment on GENIUS Act implementation?

The Treasury opened a second 31‑day public comment period focused on the advance notice of proposed rulemaking for the GENIUS Act. Stakeholders are invited to submit views on illicit finance risks, enforcement coordination, and technical rule details. The Treasury previously solicited comments in August with a broader window that closed Oct. 17.

When will the GENIUS Act take effect?

The law is slated to take effect 18 months after enactment or 120 days after the Treasury and Federal Reserve finalize regulations, whichever is later. Given current timelines, full implementation is likely in late 2026 at the earliest once final rules are published.

Why does the comment period matter for market participants?

Public comment shapes definitions, compliance timelines, and enforcement priorities. Financial institutions, crypto firms, and consumer advocates can influence anti‑illicit finance measures, reserve standards, and operational requirements that will determine how payment stablecoins operate in the U.S. market.

Frequently Asked Questions

How can industry and public stakeholders prepare comments?

Front‑load comments with key recommendations and supporting data. Cite operational impacts, compliance costs, or examples from payment systems. Reference official data from the U.S. Department of the Treasury, the Federal Reserve, and public market reports as evidence (all cited in text only).

Key Takeaways

• GENIUS Act scope: Establishes federal rules for payment stablecoins, covering reserves and consumer safeguards.
• Treasury engagement: Second 31‑day comment period invites targeted feedback on illicit‑finance and implementation details.
• Timeline: Adoption depends on Treasury/Fed rulemaking; full effect likely in late 2026.

Senate market structure work: What happens next?

The Senate is expected to consider a market structure framework that clarifies agency roles over digital assets. Senator Cynthia Lummis has indicated committee action is planned, and the bill — tentatively titled the Responsible Financial Innovation Act — could advance to a vote, shaping oversight and enforcement for exchanges and market participants.

Who should monitor the rulemaking?

Payments firms, stablecoin issuers, banks, compliance officers, and consumer advocates should monitor Federal Register notices and Treasury communications. Engagement now helps shape definitions and compliance timelines that will affect operations and risk controls.

Conclusion

The GENIUS Act places payment stablecoins under a new federal regulatory framework and the U.S. Treasury’s second comment period is a critical opportunity for stakeholders to influence anti‑illicit finance safeguards and operational requirements. Submit concise, evidence‑based comments to help define the practical rules that will govern stablecoin payments.

Published: 2025-09-19 | Author: COINOTAG | Updated: 2025-09-19