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Treasury Opens Stablecoin Consultation Focused on AI, Digital ID and DeFi Compliance

The 60-day inquiry will guide research on compliance technology, paving the way for potential rulemaking under the GENIUS law.

Overview

  • The Treasury launched a 60-day public comment period through October 17 to gather input on APIs, artificial intelligence, digital identity verification and blockchain monitoring to detect illicit finance in digital assets.
  • The request for comment explicitly explores whether DeFi smart contracts could check a user’s digital credential before executing a transaction.
  • Treasury says submissions will inform research that leads to recommendations to Congress and may result in guidance or new rules implementing the GENIUS Act.
  • Major banking groups are urging policymakers to close potential yield loopholes for stablecoin issuers, warning of deposit outflows that could strain traditional banks.
  • Federal officials are expected to review state-level stablecoin regimes for consistency with the new federal framework, a step aimed at harmonizing oversight across jurisdictions.