Treasury Seeking Comments on Genius Act Sanctions Implications
The Treasury Department is seeking public comments on how it should implement the Genius Act, which became law in July and is partly meant to prevent criminals, terror groups and others from using stablecoins to launder money, evade sanctions or finance terrorism. The agency is looking for feedback on potential regulations "that may be promulgated by Treasury," including around "regulatory clarity, prohibitions on certain issuances and marketing, Bank Secrecy Act (BSA) anti-money laundering (AML) and sanctions obligations," and more.
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Treasury specifically asked about the "estimated one-time and ongoing costs" for payment stablecoin issuers to comply with the Genius Act requirements, "including licensing, disclosure, and AML and sanctions program requirements." It also asked industry how it expects illegal finance activity involving stablecoins to change due to Genius Act requirements "related to AML and sanctions."
Comments are due by Oct. 20.
Treasury asked for public comments in August to help it identify “innovative or novel” methods that banks and other financial institutions are using to detect illegal financial activity involving digital assets, a comment notice that was required by the Genius Act (see 2508200026).