The Treasury Department announced Aug. 18 that it has opened a public comment period on proposed rules implementing the GENIUS Act, the first major federal legislation governing payment stablecoins and digital assets.
The rulemaking will define how stablecoins are issued, backed, and regulated at the federal level, shaping the future of digital payments for an industry that already processes trillions of dollars in annual transactions.
The proposed rules represent among the most consequential financial regulatory actions of the current Congress, Treasury said in its announcement. Multiple cryptocurrency exchanges, banks, and fintech companies are expected to submit formal comments during the open period.
Stablecoins are digital currencies pegged to a traditional asset, typically the U.S. dollar, and are widely used in cryptocurrency trading and increasingly in retail payments. The GENIUS Act establishes a federal framework for their issuance after years of regulatory uncertainty.
The rulemaking follows months of congressional debate and the GENIUS Act’s passage earlier this year. The legislation enjoyed bipartisan support, though disagreements remain over specific regulatory requirements, including reserve and audit standards.
Banking industry groups have pushed for strict reserve requirements and federal oversight parity with traditional banks. Cryptocurrency industry advocates have argued for a lighter regulatory touch that preserves innovation while ensuring consumer protection.
The comment period will allow stakeholders from across the financial services industry to weigh in on technical questions including capital requirements, audit standards, and consumer disclosure rules.
Treasury said it expects the final rule to be issued after a thorough review of public comments. The timeline for finalization was not specified.