Treasury seeks comments on strategies to combat digital assets fraud

The Treasury is working to implement a new stablecoins law, issuing a Request for Comment Monday as required by the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. Signed into law last month, the GENIUS Act creates a comprehensive regulatory framework for stablecoin issuers, provides parity for credit unions, and allows credit union service organizations to serve as an appropriate subsidiary entity to issue stablecoins.

Treasury seeks feedback on innovative or novel methods, techniques, or strategies that regulated financial institutions use, or could potentially use, to detect illicit activity involving digital assets. In particular, Treasury asks commenters about application program interfaces, artificial intelligence, digital identity verification, and use of blockchain technology and monitoring.

Comments are due by Oct. 17. America’s Credit Unions will submit comments and encourages credit unions and other stakeholders to do so as well. 

America’s Credit Unions has engaged with the NCUA since the bill was signed into law, urging the agency to move quickly on a rulemaking to permit credit unions to provide digital asset custody in a safe and sound manner, consistent with the bill’s one-year implementation horizon. It also has an FAQ document available to members that addresses what the GENIUS Act means for credit unions.