The U.S. Department of the Treasury has opened a second public comment period regarding the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which was signed into law by President Donald Trump on July 18, 2025. This action follows an initial request for comment issued in August 2025, and aims to gather further input from a wide range of stakeholders to inform the development of regulations for payment stablecoins in the United States.
The GENIUS Act provides a comprehensive framework for the federal regulation of payment stablecoins, defined as digital assets designed for use as a means of payment or settlement, with an issuer obligated to convert, redeem, or repurchase them for a fixed amount of monetary value. The Act tasks the Treasury Department, along with other federal agencies, with issuing regulations that encourage innovation in payment stablecoins while also establishing a tailored regulatory regime to protect consumers, mitigate potential illicit finance risks, and address financial stability risks.
The second public comment period, announced on September 18, 2025, invites the public to provide comments, data, and other information that may be useful for the Treasury to consider as it implements the GENIUS Act. This advance notice of proposed rulemaking (ANPRM) builds upon the previous request for comment, which focused on innovative methods to detect illicit activity involving digital assets. The initial comment period remains open until October 17, 2025, while the deadline for submitting comments in response to the new ANPRM is October 20, 2025.
Several key areas are under consideration during this rulemaking process. These include defining "payment stablecoin", clarifying the ban on interest payments, and determining what features would make foreign stablecoins "comparable" to those issued in the U.S.. The ban on interest payments is a particularly contentious issue, as the GENIUS Act only prevents payments by the issuer, unlike EU regulations that also ban payments by crypto service providers. The Treasury is seeking input on whether to narrow the scope of this ban, potentially addressing concerns about crypto exchanges attracting deposits by offering rewards on stablecoin holdings.
The GENIUS Act directs the Treasury and other agencies to establish standards for issuers, clarify tax treatment, and enforce anti-money laundering and sanctions compliance. Treasury officials have emphasized the need for rules that balance state and federal oversight while creating mechanisms to detect illicit finance. The public comment period also covers the custody of reserve assets, the structure of prohibitions on issuers, and the interaction between U.S. regulations and international frameworks.
The Treasury faces two deadlines for implementing the GENIUS Act: 18 months after the signing or 120 days after finalizing a concrete plan, whichever comes first. While the current process is non-binding and may delay potential impacts, such as a ban on certain stablecoins, it provides valuable time for issuers to adapt and reform. The Treasury's measured approach aims to ensure that the implementation of the GENIUS Act fosters innovation while safeguarding consumers and the financial system.
