By AML Intelligence Correspondents
THE U.S. Treasury is exploring how to use new technologies, such as artificial intelligence (AI) to stop criminal use of stablecoins.
It today issued a Request for Comment required by the GENIUS Act, on how to introduce FCC techniques around stablecoins.
The Treasury said the focus of the consultation was on how to “detect illicit activity involving digital assets”.
“In particular, Treasury asks commenters about application program interfaces [an] artificial intelligence,” it said.
The organization is also exploring the use of digital identity verification and blockchain technology to cut down on financial crime.
“Innovative tools are critical to advancing efforts to address illicit finance risks,” it said. “But [they] can also present new resource burdens for financial institutions.”
The Treasury said public feedback will be used to inform research in the area. These will focus on effectiveness, costs, privacy and cybersecurity risks.
Members of the public should submit comments by October 17. Comments responding to this request will be publicly viewable at www.regulations.gov.
U.S. President Donald Trump signed the GENIUS Act on July 18. The law creates an oversight system for permitted payment stablecoin issuers.
Issuers must hold full reserves, undergo audits, meet transparency rules, and follow anti-money laundering (AML) and sanctions laws. Regulators aim to complete implementation by November 2026.
Treasury Secretary Scott Bessent said the law will “strengthen US dominance in digital finance and help drive global demand for dollar-backed stablecoins.”
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