- U.S. Treasury seeks public comment on crypto risks under GENIUS Act.
- Input deadline set for October 17, 2025.
- Focus on stablecoins, potential market growth, and regulatory clarity.
The U.S. Treasury is soliciting public comment on combating crypto-related financial risks as part of the GENIUS Act, with input due by October 17, 2025.
This initiative aims to provide regulatory clarity, potentially impacting the stablecoin market’s growth and enhancing the U.S.’s status in global digital finance.
Section 1
The U.S. Treasury has issued a call for public comment to address crypto-related illicit finance risks. This initiative follows the enactment of the GENIUS Act, and feedback is expected by October 17, 2025. This marks a strategic regulatory effort. Key figures like Treasury Secretary Scott Bessent and SEC Chair Paul Atkins are actively involved. Quoting Scott Bessent,
“Stablecoins represent a revolution in digital finance. The dollar now has an internet-native payment rail…”The GENIUS Act is intended to provide regulatory clarity to the burgeoning stablecoin market, facilitating its growth into a multitrillion-dollar industry.
Section 2
The GENIUS Act’s enactment is anticipated to have significant effects on financial markets. Backed by U.S. Treasuries, stablecoins such as USDC, USDT, and DAI will experience increased regulatory clarity, potentially amplifying institutional interest and investment flow. Politically, this development reinforces the U.S.’s position in digital finance innovation. The intent is to maintain American dominance in the growing digital asset sector, potentially leading to a surge in demand for U.S. Treasuries backing these coins. Paul Atkins, the SEC Chair, mentioned in a statement,
“Project Crypto is an SEC-wide initiative to modernize the securities laws to foster capital formation in the digital asset markets.”
Section 3
Anticipated outcomes include robust market expansion for stablecoins as U.S.-backed financial assets gain traction. This could drive up the Total Value Locked across DeFi platforms, alongside an increase in liquidity and staking activities following regulatory approval and compliance.
