U.S. Treasury Invites Public Input Under GENIUS Act on Crypto Risks

Highlights:

• The U.S. Treasury has invited public input on detecting illicit activity in digital assets and stablecoins.
• Public feedback will guide research on the effectiveness, privacy, cybersecurity, and costs of crypto monitoring tools.
• Stablecoins could expand dollar access for billions and increase demand for U.S. Treasuries worldwide.

The U.S. Treasury has opened a public comment period to gather input on detecting illicit activity in digital assets. The move follows the GENIUS Act, which provides a framework for stablecoin oversight. Individuals and organizations have 60 days from the notice’s publication to submit feedback, with a deadline set for October 17.

Today, Treasury issued a Request for Comment required by the GENIUS Act, which furthers the Administration’s policy of supporting the responsible growth and use of digital assets, as outlined in President Trump’s Executive Order on “Strengthening American Leadership in Digital…

— Treasury Department (@USTreasury) August 18, 2025

Treasury officials said the request focuses on four key areas of the cryptocurrency ecosystem. These include application programming interfaces, digital identity verification, artificial intelligence, and blockchain monitoring. The public feedback will help the Treasury assess how regulated institutions detect and prevent unlawful financial activities involving digital assets.

The notice aligns with President Donald Trump’s executive order on “Strengthening American Leadership in Digital Financial Technology,” signed in January 2025. Treasury explained that public input will inform research on the tools’ effectiveness, costs, privacy measures, and cybersecurity risks. The agency also encouraged a wide range of participants to provide insights, including industry experts, academics, and technology providers.

The Treasury emphasized that feedback could strengthen America’s role in cryptocurrency regulation. Authorities have noted that citizens may suggest new approaches or ways of increasing the quality of detection instruments and reporting mechanisms. The feedback will also assist Treasury in emphasizing technological solutions that balance security with encouraging responsible usage of crypto.

U.S. Treasury Invites Public Input on Detecting Illicit Crypto Activity

The department called on individuals and organizations to provide details on techniques for identifying and mitigating illicit finance risks. Treasury Secretary Scott Bessent described the initiative as essential for implementing the GENIUS Act and securing U.S. leadership in digital assets.

Implementing the GENIUS Act is essential to securing American leadership in digital assets.

Stablecoins will expand dollar access for billions across the globe and lead to a surge in demand for U.S. Treasuries, which back stablecoins.

It’s a win-win-win for everyone involved:… https://t.co/p5nRQpBfnw

— Treasury Secretary Scott Bessent (@SecScottBessent) August 18, 2025

 

The Treasury research will be informed by public input on current and potential strategies to monitor cryptocurrency transactions. Meanwhile, Chainalysis and TRM Labs already offer analytics and notifications, and responses will contribute to their effectiveness. Officials stressed that comments could address cost, privacy, cybersecurity, and overall effectiveness.

The Treasury outlined that the feedback may include methods to detect activities such as money laundering and other unlawful financial flows using digital assets. Bessent highlighted that stablecoins could expand dollar access for billions and increase demand for U.S. Treasuries. He added that the initiative benefits stablecoin users, issuers, and the Treasury.

The agency will review public feedback and submit research findings to the Senate Banking Committee and House Financial Services Committee. The Treasury expects the process to improve the nation’s ability to manage risks while supporting growth in digital asset markets.

Legislative Context and Industry Perspective

The GENIUS Act belongs to the extensive legislative package introduced during the Trump administration. Other bills are the Digital Asset Market Clarity Act and the Anti-CBDC Surveillance State Act. Furthermore, the laws are expected to enhance regulation and transparency in digital finance. The Senate Banking Committee will review crypto market structures and may prioritize legislation similar to the CLARITY Act by October. Officials noted that the timing reduces the likelihood of the bills becoming campaign issues in the 2026 elections.

President Trump praised the GENIUS Act, saying it backs the crypto community, which had formerly been looked down upon. Moreover, he observed that the bill is an indicator that stablecoin users and issuers are being heard.