The US Treasury Department has initiated the formal regulatory process under the recently enacted GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act), marking a significant step toward comprehensive stablecoin regulation. The Department, operating under President Donald Trump's administration, opened an "advance notice of proposed rulemaking" on September 19, 2025, launching a one-month public comment period that will close on October 20th.
This early phase is designed to gather input from the public, cryptocurrency companies, and industry representatives to inform future regulatory proposals. The Treasury's document poses dozens of critical questions, including: "Is there a need for additional clarity regarding the extent to which reserve assets should be held?" and "Are foreign payment stablecoin regulations or regimes currently under development comparable to the system established by the GENIUS Act?"
The GENIUS Act, signed into law last month, represents the first major US cryptocurrency legislation and is considered a historic milestone for the industry. The Treasury's role under the act includes addressing sanctions compliance, tax treatments, and international regulatory coordination. Meanwhile, lawmakers are already focusing on the broader Digital Asset Market Clarity Act, which has received bipartisan support in the Senate and is being harmonized with the House of Representatives' previously passed version.
Republicans and federal financial regulators are working to quickly implement crypto-friendly regulations following President Trump's orders to establish the United States as a global crypto hub. The current regulatory push builds on a less formal effort announced last month to gather input on detecting illicit activity in cryptocurrency.