The U.S. Treasury Department has called for public comment on the GENIUS Act as it moves to implement the stablecoin law. This comes as the CLARITY Act, which provides a more comprehensive framework for the crypto industry, stalls in the Senate.
Treasury Calls For Public Comment On GENIUS Act
In a press release, the Treasury Department issued a Notice of Proposed Rulemaking (NPRM), calling for public comment regarding its implementation of Section 3 of the GENIUS Act. This follows the notice it issued last year seeking public comment on a wide range of matters related to implementing the stablecoin legislation.
The notice opens a 60-day window during which members of the public must provide comment in response to the NPRM. The crypto legislation, which President Trump signed into law last year, takes effect next year.
As CoinGape reported, the U.S. recently briefed the U.K. on its GENIUS Act implementation framework at the two countries’ 13th Financial Regulatory Working Group (FRWG) meeting, which also covered the crypto industry. Notably, other financial regulators, such as the Federal Reserve, have also moved to implement crypto legislation.
Commenting on the request for public comment, U.S. Treasury Secretary Scott Bessent highlighted how they are moving “quickly” to implement the stablecoin regulation. “Treasury welcomes input from stakeholders as we work to provide the regulatory certainty businesses need to innovate and grow in America, cement the role of the U.S. dollar as the world’s reserve currency, and keep America the crypto capital of the world,” he said.
Move To Clarify Stablecoin Issuance In The U.S.
The Treasury’s notice of proposed rulemaking aims to clarify the provision on stablecoin issuance in the country. Section 3 of the GENIUS Act provides for the issuance, offering, and sale of payment stablecoins.
The Department noted that by defining what it means to issue a payment stablecoin in the country, stablecoin issuers will gain clarity on when they need to obtain a GENIUS license. Meanwhile, the definition of offering and selling a payment stablecoin would clarify “when” and “how” these issuers can offer or sell their stablecoins in U.S. markets.
The GENIUS Act provides that from July 18, 2028, crypto firms may not offer or sell any payment stablecoins to U.S. users unless the payment stablecoin is issued by a licensed issuer. In response, stablecoin issuers such as Ripple, Circle, Coinbase, and Trump-backed World Liberty Financial have moved to secure a national trust charter, which would enable them to issue their stablecoins under the regulatory framework.
Circle has already secured full approval for its national trust bank. Meanwhile, Ripple and World Liberty Financial have secured conditional approval to operate their respective banks.
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