US Treasury Department seeks public input to help tackle illicit crypto activities
- The US Department of the Treasury issued a statement, requesting public comments on how it can detect unlawful crypto activities.
- The move complies with the directives of the GENIUS Act and follows President Donald Trump's executive order issued in January.
- Treasury Secretary Scott Bessent stated that the adoption of stablecoins could cause an increase in US Treasuries demand.
The US Department of the Treasury has requested public opinions on how financial institutions can combat illegal activities involving the use of digital assets, according to a statement on Monday.
US Treasury calls for public opinion on illicit crypto activities
The US Treasury Department has invited public comments on how financial institutions can better detect illicit activity involving cryptocurrencies, according to a statement on Monday.
The request is a requirement under the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which was signed into law by President Donald Trump in July, becoming the first official crypto regulation. It is designed to establish a comprehensive regulatory framework for stablecoin issuers in the US.
The GENIUS Act specifically focuses on anti-money laundering (AML) and sanctions compliance, requiring that Treasury bills fully back all stablecoins issued to maintain stability.
The Treasury Department stated that it is open for individuals and organizations to suggest "innovative or novel methods, techniques, or strategies" that can be deployed to monitor and prevent misuse of digital assets. Particularly, the agency is seeking public comments about application programming interfaces, artificial intelligence, digital identity verification, and the use of blockchain technology and monitoring.
The Federal Reserve stated that it has provided a 60-day window for responses, with an October 17 deadline for submissions.
The move is in line with President Trump's executive order signed in January to establish regulatory clarity for crypto. It also underscores the government's objective to "make America the crypto capital of the world."
Following the statement, Treasury Secretary Scott Bessent said in an X post on Monday that stablecoin adoption could lead to increased demand for US Treasuries.
"Stablecoins will expand dollar access for billions across the globe and lead to a surge in demand for US Treasuries," wrote Bessent. He added that the continuous push for Dollar-backed cryptocurrency adoption is a "Win-win for everyone involved," including users, issuers and the US Treasury Department.
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Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to
