Treasury Seeks Public Input on Crypto Crime Strategies Under GENIUS Act

- Treasury solicits ideas on leveraging AI, blockchain, and other technologies to combat digital asset crimes. - The move follows President Trump’s signing of the GENIUS Act into law. The U.S. Treasury Department has requested public input on how to use innovative technology to address illicit activity involving digital assets. This action stems from the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which President Donald Trump signed into law in July 2025. The legislation introduces a comprehensive federal regulatory framework for stablecoins that includes several key requirements. Stablecoins must have full backing by U.S. dollars or other liquid assets, while issuers with a market capitalization over $50 billion must undergo annual audits. In addition, the act also sets specific guidelines for foreign issuance. On August 18, 2025, The Block reported that the Treasury is seeking specific feedback on using technologies such as artificial intelligence, digital identity verification, application programming interfaces, and blockchain to detect and mitigate illicit financial activities. The public must submit comments by October 17, 2025. These efforts are a key part of the GENIUS Act, which aims to balance technological innovation with regulatory safeguards in the stablecoin market. However, the new law has raised concerns among major banking associations. They argue that certain provisions in the GENIUS Act could allow stablecoin issuers to provide interest to holders, effectively transforming stablecoins into stores-of-value. The associations warn that this dynamic could cause consumers to rapidly move their bank deposits into stablecoins, potentially disrupting the traditional financial system. Market data from August 18 at 19:15 UTC shows PayPal USD (PYUSD) trading at $1, with a 0% change in its 24-hour trading volume.