The US Ministry of Finance is pushing forward with a narrow comment window on its preliminary, formal efforts to solidify the newly established StableCOin law into a set of rules.
This arm of President Donald Trump’s administration has opened what is known as a “pre -announcement of the proposed decision -making process” on Friday, which is an early step taken to collect information that will be used to put together an actual proposal. In this case, the government asks for data on the structure (Genius) ACT, including prohibitions on issuers, sanctioning obligations, compliance with money laundering, the balance between state and federal supervision, tax matters and any additional need from the industry for clarity.
A period of one month is now open, with the public and cryptic businesses weighing on these complex questions before it closes on October 20th. The message sent dozens of questions such as “Is further clarity necessary as to the extent to which spare assets are required or should be kept in custody?” and “Are there foreign payment stableCOin -regulation or supervisory regimes or regimes in development that may be comparable to the regime established under the Genius Act?”
The role of the Treasury Department in genius is varied, including requirements for compliance with sanctions, tax treatments and how foreign jurisdictions will interact with US rules. The Friday action is intended to build on a smaller formal effort announced last month to start collecting input on how to best detect illegal activity in crypto.
Genius Act was the first major US crypto legislation to be law, and it marked a huge victory for the industry, which has now shifted focus on an even greater regulatory effort to establish rules for the wider industry. This market structure bill is a focus for legislators from both parties in the Senate, who are also in conversations with their representative house, which already approved a similar bill, Digital Asset Market Clarity Act.
Republicans in Congress and at the top of the federal financial regulators are trying to accelerate to accommodate orders from President Trump to establish friendly crypto regulations that will help the United States become a global hub for the sector.
Also on Friday, JP Morgan said in a research note that the overall crypto market should expand significantly for continued growth in the stablecoin sector or that new stableecoins may begin to cannibalize each other.
Read more: US Treasury Department starts the work with genius, collects views on illegal activity
