The US Treasury has launched a 60 -day year suspension period as part of its implementation to direct and create the national innovation of the Stablecoins Law (Genus), a newly -old law aimed at organizing Stablecoins and strengthening the American financial technology sector. The request for comment, issued on August 18, 2025, calls on the stakeholders to make notes on innovative methods to detect the illegal financial activity in the area of digital assets. The US Treasury Department stressed the importance of taking advantage of techniques such as artificial intelligence, checking digital identity, and Blockchain monitoring tools to address the emerging risks while ensuring that they are not compensated Financial institutions [1].
The genius law, which was signed by President Donald Trump in July 2025, is the first major American legislation to create a comprehensive regulatory framework for Stablecoin. It is in line with the broader executive order of the administration 14178, which seeks to strengthen the American leadership in digital financial technology and reduce national security threats from unorganized digital assets. The law stipulates that Stablecoins are supported by safe assets such as Cash and Mustury Securities, short -term repurchase agreements, with a request for monthly general disclosure of reserves and compliance to combat money laundering (AML) and the requirements for probing penalties [2].
The Treasury Department’s invitation to public inputs is an important step in shaping how the agency and other federal organizers, including the Currency and Federal Reserve Observer Office, operate the new law. Minister Scott Paystant highlighted the strategic importance of this process, noting that the comments will inform the treasury research on effectiveness, costs and risks associated with the proposed tools to combat illegal activity. The agency plans to use ideas to submit reports to the Senate Banking Committee and the Financial Services Committee in the House of Representatives, as required by the law of genius [3].
Industry experts and financial institutions are already preparing to issue their Stablecoins under the new organizational environment. Main banks such as Bank of America and Citigroup She announced intentions to launch backed symbols in dollars, while like high technology companies Atoms They develop supportive infrastructure. However, the implementation of Stablecoins includes complicated decisions, including the selection of Blockchain – public or private technology – and the movement of compliance costs, especially for non -milk, which must now adhere to the strict AML requirements and “know your customer” (KYC) (KYC) [2].
The broader effects of genius law go beyond the American financial scene. The law is designed to ensure that the US dollar remains the dominant currency in the global Stablecoin market, which may have significant implications for international financing and monetary policy. In contrast to the organization of the European Union markets in the encryption of the encryption (MICA), which provides a wider framework that covers most of the encryption assets, the American approach is more focused on the payment stablecoins. While MICA allows the passport through the member states of the European Union and the most stringent supervision of the reference squares of the assets, the genius law confirms the federal organization with a limited area of supervision at the state level, exceeding some thresholds [4].
Despite the promise of Stablecoins to enable the fastest and cheapest payments, especially for cross -border transactions, experts warn of potential risks. This includes the displacement of traditional banking services and the possibility of increasing financial instability if Stablecoins is used to circumvent the current cash systems. For example, allowing Stablecoin holders to earn interest to create a competitive threat to banks and reduce credit for companies and consumers [2].
The deadline for submitting comments to the Ministry of Treasury is October 17, 2025. The agency stressed the importance of these comments in directing its research and developing policies, which will inform future regulatory procedures and possible updates of the law of genius. It is expected that the full implementation of the law will take several years, as the final rules are likely to be formed through the ongoing discussions in Congress and the broader financial sector. [1].
source:
[1] Treasury issues request a request for comment on directing and creating the national innovation of the United States Law Stablecoins (genius) (https://home.treasury.gov/news/press-releses/sb0228)
[2] Companies plan to stablecoins under a new law, but experts say obstacles remain (https://www.reuters.com/legal/government/companies-plan-stablecoins-under-new-naw-experts-say-hurdles-remain-2025-08-12/)
[3] The US Treasury seeks to obtain general inputs to help address illicit encryption activities (https://www.mitrade.com/insights/news/live-news/article-3-1049437-20250819)
[4] Mika Act of Genius: How encryption laws differ in Europe and the United States (https://www.ccn.com/education/crypto/Mica-vs-genius- Act-how-crypto-laws-difer-in-europe-nd-us/)
