The U.S. Department of the Treasury has unveiled a blueprint for compliance that CFOs and financial leaders must follow when handling stablecoins, following new regulatory momentum and public commentary on digital asset risks. The initiative is driven by the recently enacted GENIUS Act, which aims to create a robust federal regulatory framework for payment stablecoins.

Key features of the GENIUS Act include mandatory reserve disclosures for permitted stablecoin issuers. Issuers must maintain transparent records of reserve assets to ensure both consumer protection and overall financial stability. The law also prohibits paying interest on stablecoins and restricts marketing—they cannot be promoted as legal tender or as government-backed instruments. Non-financial companies seeking to issue stablecoins face additional scrutiny, with requirements to align their operations with federal standards and to avoid misleading representations.

Treasury is not working in isolation. They have invited broad public input to refine these rules and address questions such as how reserve requirements should be applied, what kind of reserve disclosures are necessary, and how to assess the adequacy of state-level regulations compared to federal standards. Special attention is being paid to the risks posed by foreign issuers and the need for regulators to monitor liquidity and compliance for U.S. consumers.

In summary, the Treasury’s blueprint underscores the need for transparency, strict operational controls, and careful risk management for stablecoin issuers. CFOs and compliance teams should monitor these developments closely, as regulations will continue to evolve based on industry feedback and regulatory analysis. The result will be a more secure and auditable environment for stablecoin issuers and users, with stronger safeguards against misuse and instability in the digital asset market.