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25m ago

U.S. Treasury Opens 60-Day Comment Period on Stablecoin AML Tech Under GENIUS Act

The consultation probes tech-driven safeguards, including smart-contract credential checks, to curb illicit finance in digital assets.

U.s. treasury department starts work on genius, gathering views on illicit activity
US Treasury advances GENIUS Act mandate, seeks public input on stablecoin rules
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Overview

  • Treasury’s request seeks input on APIs, artificial intelligence, digital identity verification, and blockchain monitoring to counter money laundering, sanctions evasion and terrorism financing in digital assets.
  • The notice explores compliance by design, including whether DeFi smart contracts should verify a user’s digital credential before executing a transaction.
  • Public comments are due Oct. 17, 2025, and will inform Treasury research on effectiveness, costs, privacy and cybersecurity ahead of recommendations and potential guidance.
  • Treasury Secretary Scott Bessent backed the rollout, saying stablecoins could expand global dollar access and increase demand for U.S. Treasuries.
  • Banking groups led by the Bank Policy Institute warn of yield workarounds and potential deposit outflows—estimated as high as $6.6 trillion—while privacy advocates question the impact of embedded ID checks on DeFi’s openness.