ANPRM: GENIUS Act Implementation (90 FR 45159)
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Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.
Federal Register / Vol. 90, No. 180 / Friday, September 19, 2025 / Proposed Rules 45159
A 30-day comment period is provided DEPARTMENT OF THE TREASURY materials, will be part of the public
to allow interested persons to respond record and subject to public disclosure.
to this proposal. All written comments 12 CFR Chapter XV, 31 CFR Subtitles Do not submit any information in your
received in response to this proposed A and B comment or supporting materials that
rule by the date specified will be [TREAS–DO–2025–0037] you consider confidential or
considered prior to finalizing this inappropriate for public disclosure.
action. RIN 1505–ZA10 FOR FURTHER INFORMATION CONTACT: Tian
List of Subjects in 7 CFR Part 1210 Huang and Shane Shannon, Counselors
GENIUS Act Implementation
to the General Counsel; Christina Lee,
Administrative practice and AGENCY: Department of the Treasury. Senior Counsel; Degi Altantuya, Frank
procedure, Advertising, Agricultural ACTION: Advance notice of proposed Colleluori, Brendan Costello, Matan
research, Consumer protection, rulemaking. Neuman, Carol Rodrigues, and David
Marketing agreements, Reporting and Wertime, Attorney-Advisors, Office of
recordkeeping requirements, SUMMARY: The Department of the the General Counsel, OGC_GeniusAct@
Watermelon. Treasury (Treasury) is issuing this Treasury.gov, 202–622–0480,
advance notice of proposed rulemaking Department of the Treasury, 1500
For the reasons set forth in the (ANPRM) to solicit public comment on Pennsylvania Ave. NW, Washington, DC
preamble, the Agricultural Marketing questions relating to the implementation 20220.
Service proposes to amend 7 CFR part of the Guiding and Establishing SUPPLEMENTARY INFORMATION:
1210 as follows: National Innovation for U.S. Stablecoins
(GENIUS) Act. The GENIUS Act tasks I. Background and Authority
PART 1210—WATERMELON Treasury (and various other federal The GENIUS Act, enacted on July 18,
RESEARCH AND PROMOTION PLAN agencies) with issuing regulations that 2025, provides a comprehensive
encourage innovation in payment framework for the federal regulation of
■ 1. The authority citation for part 1210 stablecoins while also providing an payment stablecoins.1 As defined in the
continues to read as follows: appropriately tailored regime to protect GENIUS Act, a payment stablecoin is a
Authority: 7 U.S.C. 4901–4916 and 7 consumers, mitigate potential illicit digital asset 2 (i) that is, or is designed
U.S.C. 7401. finance risks, and address financial to be, used as a means of payment or
stability risks. Through this ANPRM, settlement and (ii) the issuer of which
Subpart C—Rules and Regulations Treasury is seeking public comment on is obligated to convert, redeem, or
potential regulations that may be repurchase for a fixed amount of
■ 2. Section 1210.501 is revised to read monetary value and represents or
promulgated by Treasury, including
as follows: regarding regulatory clarity, creates the reasonable expectation that it
§ 1210.501 Realignment of districts. prohibitions on certain issuances and will maintain a stable value relative to
marketing, Bank Secrecy Act (BSA) anti- a fixed amount of monetary value.3 U.S.
In accordance with § 1210.320(c) of money laundering (AML) and sanctions dollar-denominated (USD) stablecoins
the Plan, the districts shall be as obligations, the balance of state-level seek to combine the accessibility and
follows: oversight with federal oversight, frictionless use of digital assets with the
(a) * * * comparable foreign regulatory and stability and benefits of a USD-based
supervisory regimes, and tax issues, financial system.4
(b) District 2—The States of Alabama, Under the GENIUS Act, only
Georgia, and South Carolina. among other things. Treasury is seeking
comment on all aspects of the ANPRM permitted payment stablecoin issuers
(c) District 3—The States of Arkansas, from all interested parties and also (PPSIs) may issue a payment stablecoin
Louisiana, Mississippi, Missouri, North requests commenters to identify other in the United States, subject to certain
Carolina, Oklahoma, Tennessee, and issues that Treasury should consider. exceptions and safe harbors.5 Further,
Texas. beginning on July 18, 2028, digital asset
DATES: Comments on this ANPRM must
(d) * * * be received on or before October 20, service providers 6 may not offer or sell
(g) District 5—The States of Alaska, 2025. 1 Public Law 119–27.
Arizona, California, Colorado, Hawaii, ADDRESSES: Written comments may be 2 The term ‘‘digital asset’’ means any digital
Idaho, Iowa, Kansas, Minnesota, submitted through one of two methods: representation of value that is recorded on a
Montana, Nebraska, Nevada, New • Electronic Submission: Comments cryptographically secured distributed ledger. Id. at
Mexico, North Dakota, Oregon, South sec. 2(6).
may be submitted electronically through 3 See section 2(22) of the GENIUS Act for the full
Dakota, Utah, Washington, and the Federal Government eRulemaking definition of a payment stablecoin. National
Wyoming. portal at https://www.regulations.gov. currencies, deposits (including deposits recorded
■ 3. Section 1210.502 is revised to read • Mail: Send to U.S. Department of using distributed ledger technology), and securities
are not considered payment stablecoins.
as follows: the Treasury, Attention: Office of 4 See generally President’s Working Group on
General Counsel, 1500 Pennsylvania Digital Asset Markets, Strengthening American
§ 1210.502 Board members. Avenue NW, Washington, DC 20220. Leadership in Digital Financial Technology (2025)
The Board consists of 10 producers, We encourage comments to be at 88, https://www.whitehouse.gov/wp-content/
submitted via https:// uploads/2025/07/Digital-Assets-Report-
10 handlers, seven importers, and one EO14178.pdf.
www.regulations.gov. All comments
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public member appointed by the 5 Sec. 3(a), Public Law 119–27.
Secretary. should be captioned with ‘‘GENIUS Act 6 The term ‘‘digital asset service provider’’ means
Implementation Comments.’’ Please a person that, for compensation or profit, engages
Erin Morris, include your name, organizational in the business in the United States (including on
Administrator, Agricultural Marketing affiliation, address, email address, and behalf of customers or users in the United States)
Service. of (i) exchanging digital assets for monetary value;
telephone number in your comment. All (ii) exchanging digital assets for other digital assets;
[FR Doc. 2025–18232 Filed 9–18–25; 8:45 am] comments received, including (iii) transferring digital assets to a third party; (iv)
BILLING CODE P attachments and other supporting Continued
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45160 Federal Register / Vol. 90, No. 180 / Friday, September 19, 2025 / Proposed Rules
a payment stablecoin to any person in process and framework for the licensing, response to this ANPRM. However,
the United States unless the payment regulation, examination, and commenters are encouraged to identify,
stablecoin is issued by a PPSI or issued supervision of PPSIs,15 as well as in their comments in response to this
by a foreign payment stablecoin issuer associated regulations governing ANPRM, areas where Treasury’s
(FPSI) that meets certain requirements.7 depository institutions that hold regulations may overlap with or directly
The GENIUS Act provides three primary stablecoin reserves or otherwise implicate the regulations assigned to
categories of PPSIs, all of which must be participate in payment stablecoin other state or federal agencies.
formed in the United States: (i) a activities,16 among other directives. As discussed further below, on
subsidiary of an insured depository Under the GENIUS Act, the Secretary August 18, 2025, Treasury issued a
institution; (ii) a federal qualified of the Treasury chairs the Stablecoin request for comment (RFC) relating to
payment stablecoin issuer; or (iii) a state Certification Review Committee (SCRC), innovative methods, techniques, and
qualified stablecoin issuer.8 an interagency committee that also strategies that financial institutions use,
The GENIUS Act vests Treasury with includes the Chair of the FRB (or the or have the potential to use, to detect
various authorities and responsibilities, Vice Chair for Supervision, if delegated illicit finance related to digital assets
including express authority to issue by the FRB Chair) and Chair of the pursuant to Section 9 of the GENIUS
regulations to carry out the GENIUS FDIC.17 State qualified payment Act.19 Comments submitted in response
Act.9 For example, Treasury is tasked stablecoin issuers (of payment to the RFC should not be submitted in
with implementing limitations on the stablecoins with consolidated total response to this ANPRM.
issuance of payment stablecoins in the outstanding issuance of up to $10
United States,10 as well as issuing rules billion) generally may opt for state III. Stablecoin Issuers and Service
establishing broad-based principles for regulation so long as the state regime is Providers
determining whether a state-level substantially similar to the federal A. Issuance and Treatment of Payment
regulatory regime is substantially regime and the SCRC has approved the Stablecoins
similar to the federal regulatory state-level regulatory regime upon
framework.11 The GENIUS Act calls on determining that it meets or exceeds the The GENIUS Act tasks Treasury with
Treasury to issue regulations standards and requirements set forth in issuing regulations to implement
implementing the requirement that Section 4(a) of the GENIUS Act.18 Section 3 of the GENIUS Act.20 That
PPSIs are ‘‘subject to all Federal laws While not addressed in the GENIUS section, which is intended to have
applicable to a U.S. financial institution Act, Treasury also has responsibility for extraterritorial effect,21 provides that it
located in the United States relating to federal income tax policy with respect shall be unlawful for any person other
economic sanctions, prevention of to payment stablecoins, as part of its than a PPSI to issue a payment
money laundering, customer general responsibility for developing stablecoin in the United States.22
identification and due diligence.’’ 12 and implementing federal tax policies However, the GENIUS Act provides that
Treasury is also tasked with and programs. Treasury may issue regulations
determining whether a foreign country’s providing safe harbors from this general
II. Scope limitation that are: (i) consistent with
regulatory and supervisory regime is
comparable to the U.S. framework This ANPRM solicits public the purposes of the GENIUS Act; (ii)
established through the GENIUS Act, comments on topics and questions limited in scope; and (iii) apply to a de
which would allow certain payment organized in six main categories: minimis volume of transactions, as
stablecoins issued by an FPSI to be Stablecoin Issuers and Service determined by Treasury.23 Treasury
offered or sold in the United States, Providers, Illicit Finance, Foreign may also provide limited safe harbors if
subject to certain additional Payment Stablecoin Regimes, Taxation, it determines that unusual and exigent
conditions.13 Insurance, and Economic Data. While circumstances exist.24 Knowing
In addition, the Board of Governors of this ANPRM invites comment on any participation in a violation of Section 3
the Federal Reserve System (FRB), the aspect of the GENIUS Act, each section can result in a fine of not more than $1
Federal Deposit Insurance Corporation below includes specific questions. million for each violation or
(FDIC), the National Credit Union Commenters are not expected to imprisonment for up to five years, or
Administration (NCUA), and the Office respond to every question. Treasury both.25
of the Comptroller of the Currency generally expects to invite further 1. What topics should any regulations
(OCC) (collectively, the Primary Federal public comment on proposed to effectuate Section 3(a), including the
Payment Stablecoin Regulators) are regulations before adopting any final associated penalties, address?
generally tasked with implementing regulations. 2. Should Treasury issue regulations
capital and liquidity requirements This ANPRM generally seeks providing for safe harbors from Section
applicable to PPSIs,14 and establishing a information on topics that may be the 3(a)? If so, what factors should Treasury
subject of regulations issued by consider in adopting these regulations?
acting as a digital asset custodian; or (v) Treasury under the GENIUS Act to Would it be better to observe the
participating in financial services relating to digital fulfill its responsibilities, including as operation of Section 3(a) for a period of
asset issuance. Id. at sec. 2(7). chair of the SCRC. For administrative time before considering safe harbors, or
7 An FPSI is defined as an issuer of a payment
purposes, commenters should direct to are safe harbors necessary as soon as
stablecoin that is organized under the laws of or other relevant agencies any comments
domiciled in a foreign country, a territory of the Section 3(a) becomes operational?
United States, Puerto Rico, Guam, American Samoa, on specific topics assigned by the
GENIUS Act to other agencies, rather
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or the Virgin Islands, and is not a PPSI. Id. at sec. 19 Request for Comment on Innovative Methods
2(12). See id. at sec. 3(b) and 18. than include those comments in To Detect Illicit Activity Involving Digital Assets,
8 Id. at sec. 2(23). 90 FR 40148 (Aug. 18, 2025).
9 Id. at sec. 13. 20 Public Law 119–27 at sec. 3(d).
15 See, e.g., id. at sec. 4(b); 4(h)(1); 5(a)(1)(B);
10 Id. at sec. 3(c)–(d). 21 Id. at sec. 3(e).
5(a)(2); 5(g).
11 Id. at sec. 4(c)(2). 16 See, e.g., id. at sec. 4(a)(1)(A)(ii); 4(a)(4)(C)(iv); 22 Id. at sec. 3(a).
12 See, e.g., id. at sec. 4(a)(5). 16. 23 Id. at sec. 3(c)(1).
13 See id. at sec. 18(a)–(b). 17 See id. at sec. 2(27). 24 Id. at sec. 3(c)(2).
14 See id. at sec. 4(a)(4)(A). 18 See id. at sec. 4(c). 25 Id. at sec. 3(f).
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Federal Register / Vol. 90, No. 180 / Friday, September 19, 2025 / Proposed Rules 45161
3. Is the scope of the term ‘‘payment additional clarification or payment stablecoin to be (i) legal tender,
stablecoin’’ sufficiently clear as defined interpretation? (ii) issued by the United States, or (iii)
in the GENIUS Act? If not, what guaranteed or approved by the
B. Requirements for Issuing Payment
additional clarification should be government of the United States.
Stablecoins
provided? Abbreviations directly relating to the
Section 3(b) of the GENIUS Act Section 4(a)(1)(A) of the GENIUS Act currency to which a payment stablecoin
provides that, beginning three years establishes reserve requirements for is pegged, such as ‘‘USD,’’ are exempt
after the enactment of the GENIUS Act stablecoins. Under Section 4(a)(1)(C) of from these prohibitions.
(July 18, 2028), it shall generally be the GENIUS Act, a PPSI is required to 15. Are any regulations or guidance
unlawful for a digital asset service publish the monthly composition of the necessary to clarify the scope or
provider to offer or sell a payment issuer’s reserves, containing (i) the total application of these provisions,
stablecoin to a person in the United number of outstanding payment including whether other terms used by
States unless the stablecoin is issued by stablecoins issued by the issuer, and (ii) PPSIs may be deceptive?
a PPSI.26 Section 3(e) provides that the amount and composition of its Under Section 4(a)(12) of the GENIUS
these provisions are intended to have reserves, including the average tenor Act, certain non-financial companies
extraterritorial effect if conduct involves and geographic location of custody of may not issue payment stablecoins
the offer or sale of a payment stablecoin each category of reserve instruments. unless the SCRC unanimously votes to
to a person located in the United States. Section 18(a)(3) of the GENIUS Act make certain findings, including that it
4. Is the scope of the term ‘‘digital requires an FPSI to hold reserves in a will not pose a material risk to the safety
asset service provider’’ sufficiently clear U.S. financial institution sufficient to and soundness of the U.S. banking
as defined in the GENIUS Act? If not, meet liquidity demands of U.S. system, the financial stability of the
what additional clarification should be customers, unless otherwise permitted United States, or the Deposit Insurance
provided? under a reciprocal arrangement, among Fund. Section 4(a)(12)(D) directs the
5. Is the extraterritorial application other requirements. SCRC to issue an interpretive rule
sufficiently clear as stated in the 10. Are any regulations or guidance clarifying the non-financial company
GENIUS Act? If not, what additional necessary to clarify the scope of the restrictions.
clarification should be provided? reserve requirements in Section 4(a) or 16. What additional clarification is
Section 3(g) of the GENIUS Act the requirement to publish the necessary on the scope or application of
provides that a payment stablecoin not composition of the reserves? these restrictions?
issued by a PPSI shall not be: (i) treated 11. How will FPSIs determine the 17. What factors should the SCRC
as cash or as a cash equivalent for liquidity demands of U.S. customers in consider in making a finding that, if a
accounting purposes; (ii) eligible as cash such a way that will be sufficient to non-financial company issues payment
or as a cash equivalent margin and maintain compliance with the stablecoins, it will not pose a material
collateral for certain regulated entities; obligation to hold reserves in U.S. risk to the safety and soundness of the
or (iii) acceptable as a settlement asset financial institutions as set forth in U.S. banking system, the financial
to facilitate certain wholesale payments. Section 18(a)(3)? stability of the United States, or the
6. How should payment stablecoins 12. Are any regulations necessary to Deposit Insurance Fund? Are there any
not issued by a PPSI be treated for clarify requirements related to the factors that should be excluded from
accounting purposes under Section holding of reserve assets? In particular, consideration?
3(g)(1)? is additional clarity necessary regarding Under Section 4(c)(2) of the GENIUS
7. Are any regulations or guidance the extent to which reserve assets are Act, Treasury is required to establish
necessary to clarify any aspects of this required to, or should, be held in broad-based principles for determining
treatment provision? custody? whether a state-level regulatory regime
Section 3(h) of the GENIUS Act 13. How do market participants is substantially similar to the federal
provides that the following transactions currently meet existing jurisdictional regulatory framework under the
are exempt from the prohibitions in reserve requirements to minimize GENIUS Act.
Section 3: (i) the direct transfer of digital settlement or liquidity risk across 18. What broad-based principles
assets between two individuals acting jurisdictions that may require local should be considered in determining
on their own behalf and for their own custody of such reserve assets? whether a state-level regime is
lawful purposes, without the Section 4(a)(11) of the GENIUS Act ‘‘substantially similar’’ to the federal
involvement of an intermediary; (ii) any prohibits PPSIs and FPSIs from paying regulatory framework? Are there any
transaction involving the receipt of the holder of any payment stablecoin principles that should be excluded from
digital assets by an individual between any form of interest or yield (whether in consideration?
an account owned by the individual in cash, tokens, or other consideration) 19. How is a determination that a
the United States and an account owned solely in connection with the holding, state-level regime is ‘‘substantially
by the individual abroad that are offered use, or retention of such payment similar’’ to the federal regulatory
by the same parent company; or (iii) any stablecoin. framework, as described in Sections
transaction by means of a software or 14. Should any regulations be issued 4(c)(1) and (2) of the GENIUS Act,
hardware wallet that facilitates an to clarify the meaning of ‘‘pay,’’ similar to or different from a
individual’s own custody of digital ‘‘interest,’’ ‘‘yield,’’ ‘‘solely,’’ or determination that a state-level regime
assets. otherwise clarify the scope of Section ‘‘meets or exceeds the standards and
8. Are any regulations or guidance
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4(a)(11)? In particular, should any requirements’’ for issuing payment
necessary to clarify the scope of these stablecoins, as described in Section
regulations be issued to clarify whether,
exempted transactions?
and to what extent, any indirect 4(c)(5)?
9. Are there any other terms in
payments are prohibited? Section 4(e)(3) of the GENIUS Act
Section 3 that would benefit from
Section 4(a)(9) of the GENIUS Act provides that it shall be unlawful to
26 The statute contemplates potential exceptions
prohibits a PPSI from marketing a market a product in the United States as
for FPSIs that meet certain requirements, which are payment stablecoin in such a way that a payment stablecoin unless the product
addressed in subsequent sections of this ANPRM. a reasonable person would perceive the is issued pursuant to the GENIUS Act,
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45162 Federal Register / Vol. 90, No. 180 / Friday, September 19, 2025 / Proposed Rules
and that knowing and willful violations 24. What should Treasury consider V. Foreign Payment Stablecoin Issuers
may lead to a fine by Treasury of not when promulgating a regulation The GENIUS Act allows an FPSI to
more than $500,000 for each such implementing Section 4(a)(5)(A)(iv)? offer, sell, or otherwise make available
violation. How do payment stablecoin issuers a payment stablecoin in the United
20. To what extent does this anticipate implementing technical States under certain circumstances. To
prohibition overlap with (i) the capabilities, policies, and procedures to implement this framework, the GENIUS
prohibitions in Section 3, (ii) the block, freeze, and reject specific or Act authorizes Treasury to determine
prohibition on the use of deceptive impermissible transactions that violate whether a foreign 32 regime for the
names in Section 4(a)(9), or (iii) the federal or state laws, rules, or regulation and supervision of payment
prohibition on misrepresentation of regulations, including transactions stablecoins is comparable to the
insured status in Section 4(e)(2)? involving the secondary market, such as
21. Are any regulations or guidance requirements established under the
those that involve sanctioned persons or GENIUS Act, allowing certain payment
necessary to clarify or implement this countries?
provision, including how the number of stablecoins issued by an FPSI operating
Section 4(a)(6)(B) of the GENIUS Act
violations will be determined under under that foreign regime to be offered
provides that a PPSI may issue payment
Section 4(e)(3)(C)? or sold in the United States, subject to
stablecoins only if the issuer has the
22. Are there any other terms in certain additional conditions.33 Some
technological capability to comply, and
Section 4 that would benefit from foreign jurisdictions may not have legal
will comply, with the terms of any
additional clarification or definitions for either a ‘‘payment
lawful order.29
interpretation? 25. What, if any, regulations or stablecoin’’ or a ‘‘payment stablecoin
guidance would help clarify the issuer.’’
IV. Illicit Finance
obligations in Section 4(a)(6)(B) to have A. Comparability
The GENIUS Act includes provisions the technological capability to comply,
relating to the detection and prevention 29. For the purpose of identifying
and to comply, with any lawful order? existing foreign payment stablecoin
of illicit finance in the digital asset The GENIUS Act establishes that
sector.27 In accordance with Section 9 of regulatory and supervisory regimes, are
foreign issuers of payment stablecoins
the GENIUS Act, on August 18, 2025, there certain characteristics of a
must comply with lawful orders and, if
Treasury published in the Federal ‘‘payment stablecoin’’ recognized in the
they fail to do so, Treasury can
Register an RFC seeking input on market that differ from how this term is
designate the issuer as noncompliant,
innovative or novel methods, defined in the GENIUS Act?
resulting in a prohibition on digital 30. Are there foreign payment
techniques, or strategies that regulated asset service providers facilitating
financial institutions use, or have stablecoin regulatory or supervisory
secondary market trading of the foreign regimes, or regimes in development, that
potential to use, to detect illicit activity. issuer’s payment stablecoin.30 Treasury
Treasury will consider comments may be comparable to the regime
can issue licenses and waivers and is established under the GENIUS Act? Are
submitted in response to either the RFC directed to specify the criteria that a
or this ANPRM, so commenters need there foreign regimes that are in effect,
noncompliant foreign issuer must meet or in development, that materially differ
not, and should not, resubmit any RFC for Treasury to determine that an issuer
comments in response to this ANPRM. from the regime under the GENIUS Act?
is no longer noncompliant.31 31. What types of differences from the
In addition to topics addressed in the 26. What factors should Treasury regime under the GENIUS Act, if any,
RFC, Treasury now requests comment consider in determining whether a could create market frictions in
on the following topics relating to illicit noncompliant FPSI has cured its international digital assets activity?
finance. noncompliance in accordance with
Section 4(a)(5) of the GENIUS Act 32. As Treasury identifies factors for
Section 8(b)(3)? What kinds of evidence determining whether a foreign
subjects PPSIs to ‘‘all Federal laws or commitments should Treasury
applicable to financial institutions jurisdiction has a regulatory and
require? supervisory regime that is comparable to
located in the United States relating to 27. What else should Treasury
economic sanctions, prevention of the requirements established under the
consider in promulgating a regulation
money laundering, customer GENIUS Act, including standards for
related to Section 8 of the GENIUS Act,
identification and due diligence,’’ and issuing payment stablecoins provided in
including its ability to issue licenses and
directs Treasury to issue implementing Section 4(a), what specific factors
waivers?
regulations, including related to should Treasury consider, including
28. In the economic sanctions context,
effective programs for AML and factors that should disqualify a foreign
lawful orders will include sanctions
sanctions, monitoring and reporting jurisdiction from being determined to be
designations. The persons and property
suspicious activity, and technical comparable? Are there factors that
subject to blocking will be identified
capabilities and policies and procedures should be excluded from consideration?
with reasonable particularity by the
33. To what extent should Treasury
to block, freeze, and reject publication of identifying information
consider a foreign jurisdiction’s
impermissible transactions.28 for such persons and property on
23. What should Treasury consider willingness and ability to enforce the
Treasury’s Office of Foreign Assets
when promulgating regulations prohibitions in Sections 4(a)(9), 4(e)(2),
Control’s Specially Designated
implementing Section 4(a)(5), including and 4(e)(3), as related to
Nationals List. If regulation or guidance
AML and sanctions programs, misrepresentations of U.S. government
is promulgated, what kind of
support or that of the foreign
lotter on DSK11XQN23PROD with PROPOSALS1
monitoring and reporting suspicious considerations and provisions should it
activity, and customer identification government, as a factor in comparability
include to clarify the requirement to
and due diligence? What, if any, unique determinations under Section 18(b)?
comply with lawful orders in the
features of PPSIs should Treasury economic sanctions context? 32 References in this ANPRM to ‘‘foreign’’ regimes
consider? also include those of U.S. territories, Puerto Rico,
29 See id. at sec. 4(a)(6)(B).
Guam, American Samoa, and the U.S. Virgin
27 See, e.g., id. at sec. 4(a)(5); 8; 9. 30 See id. at sec. 8. Islands. See id. at sec. 18(a)(1).
28 See, e.g., id. at sec. 4(a)(5). 31 See id. at sec. 8(b); 8(c). 33 See id. at sec. 18.
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Federal Register / Vol. 90, No. 180 / Friday, September 19, 2025 / Proposed Rules 45163
B. Reciprocity 39. How should implementation of the 49. What are the economic benefits of
34. How should Treasury interpret GENIUS Act take into account aligning U.S. stablecoin rules with
‘‘interoperability’’ in Section 18(d)(1)(C), insurance industry practices related to foreign regimes (e.g., reduced friction
describing ‘‘interoperability with U.S.- payment stablecoins, the development and increased access)?
dollar denominated payment of insurance markets related to payment 50. What is the estimated
stablecoins issued overseas?’’ What stablecoins, the activities of domestic
improvement in compliance efficiency
technical, legal, regulatory, or other and foreign insurers and reinsurers
and market participation due to clearer
measures are most relevant for regarding payment stablecoins, and the
provision of insurance coverages regulatory guidance as compared to the
interoperability? To what extent should environment before the enactment of the
compliance with any interoperability relevant to payment stablecoins?
40. How should GENIUS Act GENIUS Act?
standards issued under Section 12 be
required under reciprocal arrangements implementation take into account the 51. What is the projected impact of
or other agreements entered into under types and amounts of insurance regulatory clarity on startup formation,
Section 18(d)? coverage that should be purchased by venture investment, and product
PPSIs or FPSIs? innovation?
C. FPSIs 41. What should Treasury consider
52. What is the estimated impact from
35. What information should U.S. regarding the possibility of insurers
the adoption of payment stablecoins on
authorities require from a FPSI acting as PPSIs, FPSIs, or digital asset
service providers, including with respect transaction, processing, and settlement
registered under Section 18(c), and in fees, failure rates, and timelines, as
what format(s) should such information to insurance reserving practices and
regulatory requirements? compared to existing payments systems?
be made available, to ensure that U.S.
customers understand how to demand 42. What other topics should Treasury 53. What is the estimated impact of
timely redemption of the instrument? consider with respect to the impact of PPSIs and FPSIs on the demand for
36. Are any regulations or guidance the GENIUS Act and its implementation Treasury securities, repurchase
necessary to clarify the prohibition on on the insurance industry? Which issues agreements and reverse repurchase
offers and sales of payment stablecoins should be the highest priority items for agreements that are eligible reserve
issued by foreign issuers in the United Treasury to consider? assets under Sec. 4(a)(1)(A)?
States under Section 3(b)(2) of the VIII. Economic Data
GENIUS Act, including the requirement IX. Other Topics
that an FPSI have the ‘‘technological The following questions are intended
to assist Treasury in analyses that it may 54. Are any regulations or guidance
capability’’ for compliance? necessary to address risks associated
perform regarding the potential costs
VI. Taxation and benefits of certain regulations with the resolution of a bankrupt or
The GENIUS Act does not address the related to the GENIUS Act. failed PPSI, including those that may
federal income tax characterization of have stablecoins in international
A. Costs circulation?
payment stablecoins or any other issues
relevant to the application of the 43. What are the estimated one-time 55. What types of conflicts of interest
Internal Revenue Code to payment and ongoing costs for PPSIs and FPSIs might arise for stablecoin issuers, and
stablecoin transactions. The to comply with the requirements under what safeguards might enable
characterization of a financial the GENIUS Act, including licensing,
stakeholders to be confident in a fair
instrument or other asset for federal disclosure, and AML and sanctions
market?
income tax purposes in many cases program requirements?
determines or affects how it is taxed. 44. What are the expected legal and 56. Which of the topics addressed in
For example, if payment stablecoins enforcement costs for PPSIs and FPSIs this ANPRM are most critical for
were treated as debt instruments for associated with GENIUS Act establishing the GENIUS Act regulatory
federal income tax purposes, they could compliance, including litigation-related framework? Are there any other factors
be subject to various tax rules governing expenses? Treasury should consider in sequencing
bonds or securities.34 45. What are the potential costs and prioritizing these rulemakings?
37. To what extent would guidance associated with registration under state
57. Are there other topics not
from the IRS on the classification of regimes as compared to federal regimes,
addressed in this ANPRM that should be
payment stablecoins be necessary or including any administrative burdens or
considered in future Treasury
helpful to taxpayers? impacts on innovation?
rulemakings?
38. What other topics, if any, should B. Benefits
any such tax guidance address? Which 58. What is the projected impact of
issues should be the highest priority 46. What are the potential advantages regulatory clarity on demand for
items to address? of registering under state regimes payment stablecoins?
compared to federal regimes,
VII. Insurance particularly in terms of administrative X. Regulatory Planning and Review
The following questions are intended efficiency and support for innovation? This ANPRM is a significant
to assist Treasury in evaluating how the 47. The GENIUS Act establishes
regulatory action under Executive Order
GENIUS Act and its implementation federal safeguards to protect consumers.
12866. It has been reviewed by the
lotter on DSK11XQN23PROD with PROPOSALS1
may affect the insurance industry. How should the economic benefits of
consumer protection be measured? Office of Management and Budget.
34 For a discussion of issues relating to the tax 48. How do you expect illicit finance Rachel Miller,
characterization of payment stablecoins, see activity involving payment stablecoins Executive Secretary, U.S. Department of the
Strengthening American Leadership in Digital and efforts to combat that activity to
Financial Technology, Chapter VII (Taxation), Treasury.
available at https://www.whitehouse.gov/wp-
change due to GENIUS Act [FR Doc. 2025–18226 Filed 9–18–25; 8:45 am]
content/uploads/2025/07/Digital-Assets-Report- requirements for PPSIs related to AML
BILLING CODE 4810–AK–P
EO14178.pdf. and sanctions?
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