The U.S. Treasury Department has formally launched the initial rulemaking phase to convert the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into a cohesive regulatory framework. This advance notice of proposed rulemaking (ANPRM) was published on September 19, 2025, at 3:16 p.m. ET, initiating a 30-day public comment window that will close on October 20. The ANPRM seeks detailed input on prohibited activities for stablecoin issuers, sanctions compliance requirements, anti-money laundering obligations, custody arrangements for reserve assets and the delineation between federal and state oversight.
Stakeholders are invited to address more than two dozen specific questions, including the adequacy of reserve custody arrangements, comparability of foreign stablecoin regimes and optimal mechanisms for illicit activity detection. The Treasury’s rulemaking outreach builds on a less formal request for information issued in August and involves cooperation with multiple federal agencies tasked with enforcing the GENIUS Act’s provisions. Questions cover tax treatment of stablecoin transactions, sanctions applicability to cross-border settlements and balance of authority between the Treasury Department, the Federal Reserve and other regulators.
The GENIUS Act represents the first U.S. federal legislation directly applicable to stablecoins. Having become law in July 2025, it empowered the Treasury to prescribe regulations on issuers, reserve management and market structure conditions. Lawmakers are concurrently drafting broader digital asset market bills in both the Senate and House to address tokens beyond stablecoins. Industry groups and financial institutions are expected to submit extensive comments, highlighting the need for clarity on reserve asset types, custodial requirements and enforcement mechanisms to foster innovation and safeguard financial stability.
Key issues raised include the appropriate liquidity standards for reserve assets, custodial eligibility criteria and reporting obligations to ensure transparency. The ANPRM underscores the administration’s objective to establish a balanced regulatory environment that minimizes illicit finance risks while promoting the U.S. as a global hub for digital asset activity. The Treasury’s solicitation of industry and public input marks a critical step toward final rule issuance anticipated in mid-2026.
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