U.S. Treasury Releases Remarks On Genius Act

The U.S. Department of Treasury has published 'Request for Comment on Innovative Methods To Detect Illicit Activity Involving Digital Assets', an official docket according to the government website. This comes after the successful passing of the Genius Act, a first stablecoin bill of its kind, was recently signed into law in July.

The Treasury actively seeks feedback from the public and active industry stakeholders to evaluate the effectiveness, risks, costs, and operational challenges associated with deploying new technologies for illicit activity detection involving digital assets. This supports a requirement within the bill and broader agenda set out earlier in the year under President Trump's Executive Order 114178 called 'Strengthening American Leadership in Digital Financial Technology'.

Particularly, the focus is on understanding how financial institutions incorporate APIs for data sharing and access, use AI to analyze transaction patterns and uncover complex illicit networks, employ digital identity verification to streamline onboarding and compliance, and utilize blockchain monitoring to trace suspicious transactions across public ledgers.

This aims to develop well-informed policies and guidelines, fostering a risk-based approach that supports technological innovation while strengthening the overall integrity and security of the digital asset ecosystem. All comments are to be made electronically via the submission procedure, with a final deadline on 17th October, 2025.