US Treasury Opens Second Public Comment Period for GENIUS Act Stablecoin Regulations

The US Department of the Treasury has launched a second round of public comments regarding the implementation of the GENIUS Act, the landmark stablecoin regulation legislation signed by President Donald Trump. This development marks a significant step forward in establishing comprehensive stablecoin payment regulations in the United States.

Treasury Invites Stakeholder Feedback on Stablecoin Law

On Thursday, the Treasury Department announced its decision to open an additional 31-day comment period for the GENIUS Act implementation. While the advance notice of proposed rulemaking was not mandatory for implementing the legislation, the Treasury emphasized its commitment to building upon existing work through public engagement.

The Treasury statement confirmed that it "welcomes comments and views from a wide range of stakeholders" on the advance notice of proposed rulemaking. This second comment period follows the initial public comment phase that opened in August, which provided stakeholders until October 17 to submit feedback and concerns related to illicit activity prevention.

GENIUS Act Background and Implementation Timeline

The GENIUS Act represents one of three cryptocurrency-related bills passed during the Republican lawmakers' "Crypto Week" initiative in July. President Trump signed the legislation into law on July 18, with executives from major cryptocurrency companies including Gemini, Coinbase, Circle, and Kraken present at the signing ceremony.

The comprehensive stablecoin regulation is designed to govern payment stablecoins operating within US jurisdiction. According to the current timeline, the GENIUS Act will become effective either 18 months after its signing or 120 days following the finalization of regulations by the US Treasury and Federal Reserve. This implementation schedule suggests the law will likely take effect in late 2026 at the earliest.

Senate Prepares for Crypto Market Structure Vote

In parallel with the GENIUS Act implementation process, the US Senate is preparing to address cryptocurrency market structure legislation. According to Wyoming Senator Cynthia Lummis, a prominent member of the Senate Banking Committee, the committee expects to vote on comprehensive digital asset market structure framework by the end of September.

The proposed legislation, tentatively named the Responsible Financial Innovation Act, aims to clarify the regulatory roles of US financial agencies in overseeing and enforcing cryptocurrency regulations. This market structure bill could potentially become law by 2026, working in conjunction with the GENIUS Act to create a comprehensive regulatory framework for digital assets.

Congressional Engagement with Crypto Industry

Recent congressional activity demonstrates increased engagement between lawmakers and cryptocurrency industry leaders. Members of Congress, including Senator Lummis, participated in three separate roundtable discussions this week with executives from major crypto companies. These discussions focused on market structure regulations and potential Bitcoin reserve legislation.

The active dialogue between regulators and industry participants reflects the growing importance of establishing clear regulatory guidelines for the expanding cryptocurrency sector. These collaborative efforts are expected to inform the development of both the GENIUS Act regulations and the broader market structure framework.

Implications for Stablecoin Market

The GENIUS Act implementation represents a pivotal moment for the US stablecoin market. The legislation will establish federal oversight for payment stablecoins, potentially bringing greater stability and legitimacy to this rapidly growing sector of the cryptocurrency ecosystem.

The Treasury's decision to solicit additional public comments demonstrates its commitment to comprehensive stakeholder engagement throughout the regulatory development process. This approach aims to ensure that the final regulations address the needs of various market participants while maintaining appropriate consumer protections and financial system stability.

Looking Ahead: Regulatory Landscape Evolution

As the Treasury continues to develop GENIUS Act implementation guidelines, the cryptocurrency industry awaits clarity on specific regulatory requirements. The parallel development of market structure legislation in the Senate suggests that 2026 could mark a transformative year for cryptocurrency regulation in the United States.

The combination of stablecoin-specific regulations through the GENIUS Act and broader market structure guidelines through the Responsible Financial Innovation Act would create a comprehensive regulatory framework for digital assets. This dual approach reflects policymakers' recognition of the need for both targeted and holistic regulatory solutions in the evolving cryptocurrency landscape.

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