U.S. Treasury Takes Next Step in Turning GENIUS Act Into Stablecoin Regulations

The U.S. Treasury Department is pushing forward with a narrow comment window on its preliminary, formal efforts to solidify the recently established stablecoin law into a set of regulations. This arm of President Donald Trump's administration has opened what's known as an "advance notice of proposed rulemaking" on Friday, which is an early step taken to gather information that will be used to put together an actual proposal. In this case, the government is asking for data on building out its requirements under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS) Act, including prohibitions on issuers, sanctions obligations, anti-money laundering compliance, the balance between state and federal oversight, tax matters and any further need from the industry for clarity. A one-month period is now open in which the public — and crypto businesses — can weigh in on these complex issues before it closes on October 20. The notice posted dozens of questions, such as, "Is additional clarity necessary regarding the extent to which reserve assets are required to, or should, be held in custody?" and "Are…