US Treasury Secretary Highlights GENIUS Act’s Role in Stablecoin Growth

According to the Treasury, the GENIUS Act–mandated request seeks public input on tools financial institutions use or could use to detect illicit digital-asset activity, informing research on effectiveness, costs, privacy, and cybersecurity.

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Summary

In an official press release on August 18, the U.S. Treasury issued a Request for Comment required by the GENIUS Act, seeking public feedback on innovative methods, techniques, or strategies that regulated financial institutions use—or could use—to detect illicit activity involving digital assets. Treasury said it will use the comments to inform research on the effectiveness, costs, privacy, and cybersecurity risks of such tools. Treasury Secretary Scott Bessent welcomed implementation of the GENIUS Act, stating that stablecoins can expand global dollar access and increase demand for U.S. Treasuries. The notice referenced the Administration’s policy of responsible digital-asset growth and followed President Donald Trump’s signing of the legislation last month.

Terms & Concepts
  • GENIUS Act: U.S. legislation guiding digital-asset policy; it requires Treasury to solicit public input on tools to detect and mitigate illicit finance risks.
  • Digital assets: Blockchain-based assets such as cryptocurrencies and tokens used or transferred on distributed ledgers.
  • Stablecoin: A cryptocurrency pegged to a stable asset (e.g., the U.S. dollar), often backed by reserves like U.S. Treasuries to reduce volatility.