The U.S. Treasury has initiated consultations to gather public input on the implementation of the GENIUS Act regarding stablecoin regulation.
Treasury Consultation Process
The U.S. Treasury Department announced on Monday the launch of a consultation process, inviting "interested individuals and organizations" to provide input on digital asset oversight. Officials emphasize that the contributions will help establish clear standards for stablecoin risk management.
Key Provisions of the GENIUS Act
The GENIUS Act creates a federal framework for stablecoin regulation, requiring tokens to be fully backed by dollars or liquid assets. Issuers with a market capitalization above $50 billion must undergo annual audits, and the law establishes new rules for foreign issuers.
Political and Market Implications
The GENIUS Act represents the first federal crypto legislation signed into law under Trump, establishing a precedent for regulating dollar-pegged tokens. Treasury officials highlight that stablecoin oversight is crucial to maintaining financial stability in the U.S.
The U.S. Treasury has launched a consultation to collect public opinions on the implementation of the GENIUS Act, the country’s first federal stablecoin law, which mandates full backing and auditing for stablecoins.
