On September 18, the Treasury published an advance notice of proposed rulemaking in the Federal Register to solicit comments on the implementation of the GENIUS Act, which provides a comprehensive framework for regulating stablecoins for payment. The Treasury seeks feedback on regulations in six categories: stablecoin issuers and service providers, illicit finance (related to BSA/AML), foreign payment stablecoin regimes, taxation, insurance, and economic data. The notice also requested commenters identify areas where Treasury regulations may overlap with those assigned to other state or federal agencies.
In July, Congress passed the GENIUS Act to regulate payment stablecoins (covered by InfoBytes here). The Treasury issued a request for comment on new technologies and strategies to help financial institutions identify and mitigate illicit financial risks involving digital assets (covered here).
The Treasury has asked whether regulations should provide safe harbors from Section 3(a), clarify the extraterritorial application of the Act, include accounting guidance for stablecoins not issued by permitted payment stablecoin issuers, and clarify requirements for reserve asset custody. The Treasury’s additional questions focused on the criteria the stablecoin certification review committee should consider when evaluating risks posed by non-financial companies issuing stablecoins, as well as issues concerning foreign payment stablecoin issuers and taxation.
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