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.