The United States Treasury Department is seeking public input on how to put a new stablecoin law into practice. This law, called the “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS) Act, was signed last summer by then-President Trump. It’s a big step for how digital money will be managed across the country.
The GENIUS Act tells the Treasury to create rules. These rules aim to help new stablecoin payment systems grow. They also set up ways to keep users safe and stop illegal money activities. Plus, the rules look at risks to the economy. The Treasury shared this news in a press release, saying they want feedback to help shape the final rules.
Tesoro EE. UU. abre consulta sobre GENIUS Act
Comentarios hasta el 20 de octubre
Temas: supervisión federal, AML/BSA y sanciones
No define fiscalidad; podrÃa incluir emisores extranjeros pic.twitter.com/HS5pblM8sx— Diario฿itcoin (@Blaze Trends)
Anyone interested can offer their thoughts. This includes people who follow the industry, those who work in it, and even critics. You have until October 20 to send in your comments. This short timeframe means the industry and regulators need to quickly talk about rules that have been unclear until now.
What the GENIUS Act Covers, and What it Misses
One thing the Treasury pointed out is that the GENIUS Act doesn’t clearly say how stablecoin payments should be taxed at the federal level. This means the Internal Revenue Service (IRS) might have its own ideas. This could create confusion about taxes for people and companies using stablecoins.
The law also has a part that might let foreign companies offer stablecoins in the U.S. market. But it’s not clear yet when or how this would happen. This brings up questions about international business and how the U.S. might watch over companies from other countries.
Balancing Federal and State Rules
A big question is how to balance rules made by the federal government with those made by individual states. Right now, many crypto companies get different licenses from each state. These licenses have different rules and costs. The GENIUS Act could make these rules more consistent across the nation. But we don’t know how much coordination there will be.
The Treasury is also thinking about limits on how stablecoins can be advertised. They want to know how to apply rules from the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws. Plus, they need to figure out how economic sanctions will apply. These rules are very important to stop stablecoins from being used for bad deeds. This has been a worry for lawmakers and regulators.
How the Law Came to Be
The GENIUS Act passed both houses of Congress in July. Republicans led this effort, and President Donald Trump supported it. The president at the time said he wanted to sign a stablecoin law by August. This was part of his goal to change how the U.S. government regulates things.
In September, the Treasury Department also asked for comments on how to find illegal uses of digital money. This shows that the current public request for comments is part of a bigger plan. The government wants to create clear rules for the market. Different government groups working together will be key to making these rules work and be easy to understand.
This public discussion and the new rules that follow will largely decide the future of stablecoin payments in the U.S. These actions could even set an example for other countries. Many nations want to find a balance between new ideas and keeping consumers safe.