Washington , US– August 19, 2025 – The U.S. Department of the Treasury has issued a Request for Comment (RFC) regarding innovative methods for detecting illicit activity involving digital assets. The move comes as part of the implementation of the recently enacted Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The request signals a significant step forward in establishing a comprehensive regulatory framework for stablecoins, with a specific focus on leveraging new technologies to enhance anti-money laundering (AML) and counter-financing of terrorism (CFT) efforts.

Headline Points:

 * GENIUS Act in Action: The comment request is a direct result of the GENIUS Act, which creates a comprehensive regulatory framework for stablecoin issuers and aims to bolster U.S. leadership in digital finance.

 * Focus on Technology: Treasury is seeking feedback on the use of innovative tools, including Artificial Intelligence (AI), Application Program Interfaces (APIs), digital identity verification, and blockchain monitoring to combat illicit finance.

 * Public Feedback Window: The public has 60 days to submit comments, with the deadline set for October 17, 2025. This input will inform Treasury’s research on the effectiveness, costs, and risks associated with these technologies.

 * Strengthening National Security: The initiative is framed as a key component of the administration’s broader strategy to support the responsible growth of digital assets while simultaneously reinforcing national security and combating financial crime.

A Call for Innovation in Illicit Finance Detection

The request for comment, which was published in the Federal Register, fulfills a specific obligation under section 9(a) of the GENIUS Act. This landmark legislation, signed into law on July 18, 2025, establishes the first-ever federal regulatory system for stablecoins. Its primary goals are to ensure the stability and trust of these digital assets, protect consumers, and maintain the U.S. dollar’s dominance in the global financial landscape.

In its request, the Treasury Department is inviting interested parties—including regulated financial institutions, technology firms, and the general public—to provide feedback on novel methods for identifying and preventing the use of stablecoins for money laundering, sanctions evasion, and other illegal activities. Specifically, the department has highlighted several key areas for comment:

 * Artificial Intelligence: The use of AI and machine learning to analyze large datasets of transaction information and flag suspicious patterns that might be missed by traditional methods.

 * Application Program Interfaces (APIs): How APIs can be used to facilitate secure and efficient information sharing between financial institutions and regulators to track illicit activity.

 * Digital Identity Verification: The role of advanced digital identity tools in ensuring that stablecoin users are properly vetted and identified, thereby reducing anonymity.

 * Blockchain Technology and Monitoring: The potential for blockchain analytics and on-chain monitoring to enhance transparency and provide real-time insights into the movement of funds.

Treasury Secretary Scott Bessent has stated that the GENIUS Act “will strengthen US dominance in digital finance and help drive global demand for dollar-backed stablecoins.” This request for comment is a practical step toward achieving that vision by addressing one of the most significant concerns associated with digital assets: their potential for misuse by bad actors.

The public comments received will be used to inform Treasury’s research on the effectiveness, costs, and privacy and cybersecurity risks of these innovative tools. This research will, in turn, guide future public guidance and rulemaking by the Financial Crimes Enforcement Network (FinCEN).

The move is expected to be welcomed by many within the financial and technology sectors who have long called for clear regulatory guidelines. The establishment of a predictable and robust framework is seen as essential for encouraging further investment and innovation in the stablecoin market. By actively seeking input from a wide range of stakeholders, the U.S. government is attempting to strike a balance between fostering technological progress and ensuring the integrity of the financial system.