Treasury seeks input on GENIUS Act implementation
The Treasury Department published Friday an advance notice of proposed rulemaking (ANPR) to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which was signed into law in July.
The GENIUS Act tasks Treasury and other federal agencies with issuing regulations that encourage innovation in payment stablecoins while also providing an appropriately tailored regime to protect consumers, mitigate potential illicit finance risks, and address financial stability risks.
Following the successful advocacy by America’s Credit Unions, leagues and credit unions, the regulatory framework will contain parity for credit unions with other issuers and allows credit union service organizations to serve as an appropriate subsidiary entity to issue stablecoins.
The ANPR features nearly 60 specific questions addressing topics that include:
- Issuance and treatment of stablecoins;
- Requirements for issuing stablecoins;
- Potential Bank Secrecy Act/anti-money laundering regulations to consider when promulgating rules and regulations;
- The interoperability of U.S. stablecoins and stablecoins issued by other governments;
- Account insurance industry approaches; and
- Safeguards for enabling confidence in the stablecoin market.
Comments are due Oct. 20. America’s Credit Unions has urged the NCUA to “move quickly to begin rulemaking that will permit credit unions to provide digital-asset custody in a safe and sound manner,” within the bill’s one-year implementation horizon.
Relatedly, Treasury issued a request for comment on strategies to combat digital assets fraud in August, which is required by the GENIUS Act. Comments on this request are due by Oct. 17, and America’s Credit Unions will submit comprehensive comments for both.
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