Catenaa, Monday, September 22, 2025- The US Treasury Department opened a public consultation Thursday on rules for the GENIUS Act, the country’s first law dedicated to stablecoins.
The Guiding and Establishing National Innovation for US Stablecoins Act, signed in August with backing from President Donald Trump, directs Treasury to draft regulations that support payment innovation while ensuring consumer protection, anti-money laundering compliance, and financial stability safeguards.
Officials asked for input from industry participants and critics on open questions surrounding taxation, oversight, and treatment of foreign stablecoin issuers.
Treasury noted the act does not define how the Internal Revenue Service should classify stablecoins for income tax purposes, leaving scope for future interpretation.
Another point concerns whether non-US issuers can legally introduce stablecoins into the American market.
The law leaves this provision open but without a defined timeline. The Treasury also sought views on whether to restrict marketing, how to balance state and federal roles, and where Bank Secrecy Act and sanctions rules should apply.
The request follows a separate notice last month in which the department asked for comments on detecting illicit use of digital assets. Responses on the GENIUS Act will be accepted until October 20, after which Treasury is expected to prepare a formal regulatory proposal.
The process marks the first attempt to implement a federal framework for stablecoins, a sector long managed through a patchwork of state rules and agency guidance.
