The Treasury Department today issued a request for comment on stablecoin implementation, particularly on tools or strategies that financial institutions can use to detect illicit activity involving digital assets.
The request for comment is required under the recently enacted Genius Act, which creates a regulatory framework for payment stablecoins. According to the Treasury Department, it is seeking feedback on “innovative or novel methods, techniques or strategies that regulated financial institutions use, or could potentially use, to detect illicit activity involving digital assets. In particular, Treasury asks commenters about application program interfaces, artificial intelligence, digital identity verification and use of blockchain technology and monitoring.”
“Innovative tools are critical to advancing efforts to address illicit finance risks but can also present new resource burdens for financial institutions,” the department said. “As required by the Genius Act, Treasury will use public comments to inform research on the effectiveness, costs, privacy and cybersecurity risks, and other considerations related to these tools.”
Public comments are due by Oct. 17.
