GENIUS Act: US Treasury Slow-Walks Stablecoin Regulation
The US Treasury Department is proceeding cautiously with the implementation of the GENIUS Act, a key piece of legislation impacting stablecoin regulation in the United States. A second public comment period has been opened, allowing stakeholders to provide feedback on potential implementation strategies.
This step, while non-binding, signals the Treasury's intent to gather comprehensive input before finalizing its approach. Once a concrete plan is established, strict deadlines for compliance will follow.
Treasury's GENIUS Act Timeline: A Marathon, Not a Sprint?
Since its enactment, the GENIUS Act has prompted considerable discussion regarding its potential consequences, including its effect on major stablecoins like USDT. The Treasury faces two deadlines for implementation: 18 months after the initial signing or 120 days after the release of a finalized action plan.
The recent announcement highlights the ongoing progress:
“Today, the US Department of the Treasury issued an Advance Notice of Proposed Rulemaking (ANPRM), seeking public comment related to Treasury’s implementation of the GENIUS Act. The ANPRM…offers the public an opportunity to contribute to the implementation of this law,”
This follows a previous request for feedback centered on security enforcement. The current inquiry is broader, but both share a mid-October deadline for submissions.
Deadlines and Delays: Implications for Crypto Firms
Despite this activity, it's important to note that the Treasury isn't obligated to incorporate any received feedback. The absence of a guaranteed timeline for the action plan's release introduces ambiguity. While this may seem like a delay, it provides crucial preparation time for crypto companies.
The GENIUS Act, as currently structured, could potentially ban USDT within the US and necessitate significant operational adjustments for stablecoin issuers. Tether has proactively started developing a new stablecoin aimed at meeting regulatory requirements. A delayed implementation of the GENIUS Act may afford other firms the opportunity to adapt their strategies.
For US-based crypto users, an immediate ban on USDT or similar restrictions are unlikely. The extended timeline allows for industry adaptation and regulatory clarification.