TL;DR

• The U.S. Treasury has launched a 30-day comment period to help implement the GENIUS Act, America's first law focused on payment stablecoins.
• Officials are requesting feedback on how the law should handle taxation, foreign issuers, anti-money laundering, and regulatory oversight.
• The law does not yet resolve some big questions, like the tax treatment of stablecoins or exactly how foreign stablecoin issuers will be regulated.

The U.S. Treasury Department has officially opened a public comment period to guide the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act ~ the country’s first law dedicated to payment stablecoins.

In a statement released Thursday, Treasury officials said the law directs them to issue 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.”

The department is now asking industry participants, critics, and the general public to weigh in on what those regulations should look like. The consultation period runs through October 20, 2025, and submissions can be made through Regulations.gov.

What the Treasury Wants to Know

Treasury’s request covers a wide range of open questions from tax treatment to foreign participation. One major unresolved issue is how stablecoin transactions should be treated for federal income tax purposes. The GENIUS Act does not provide explicit guidance, leaving room for the Internal Revenue Service (IRS) to interpret how these assets should be classified.

Another key topic is whether and under what conditions foreign issuers should be allowed to offer their stablecoins in the United States. This has been a sticking point for policymakers seeking to encourage innovation without opening the door to regulatory arbitrage.

The department is also exploring how to balance state and federal oversight, whether to impose marketing restrictions on issuers, and where to apply existing frameworks like the Bank Secrecy Act, anti-money-laundering rules, and sanctions obligations.

Why This Matters

The GENIUS Act is the first piece of crypto-specific legislation to clear both chambers of Congress, passing in July with bipartisan support and backing from President Donald Trump. Its goal is to create a framework that gives stablecoin issuers clarity on reserves, disclosures, and compliance obligations while ensuring that risks to the financial system are addressed.

How these rules are written could have far-reaching effects. Stablecoins are a cornerstone of digital finance, powering trading, payments, cross-border settlements, and DeFi applications. Overly restrictive rules could stifle growth, while overly loose ones could create new risks.

What Comes Next

Once the public comment period ends, Treasury will use the feedback to draft a formal rule proposal, which will then go through additional review before being finalized. Last month, the department also issued a separate request for comments on ways to detect illicit finance activity in digital aissued a clear signal that enforcement will be a priority as these rules are developed.

Final Thought

This is a rare opportunity for the crypto industry, tax experts, and even individual users to help shape the future of stablecoin regulation in the U.S. Clear, well-crafted rules could make stablecoins both safer and easier to use and the input gathered over the next month will set the tone for how that balance is struck.

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