Ladies and Gentlemen:

The Bank Policy Institute^[1] is writing in response to the notice of proposed rulemaking issued by the U.S. Department of the Treasury regarding the implementation of Section 3 of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (the "GENIUS Act").^[2]

It is critical that the Treasury and Department other agencies with rule-writing responsibilities under the GENIUS Act craft regulations that preserve the benefits of payment stablecoins for their intended use in payments and settlements without causing undue and unnecessary risks for consumers, other stablecoin holders or users, competition, credit availability, illicit finance, or financial stability.

Section 3 of the GENIUS Act sits at the heart of the statute, containing key prohibitions that restrict issuance, offers, sales, and other activities relating to payment stablecoins issued by regulated domestic and foreign issuers. In Section 3, Congress also directed the Secretary of the Treasury to "issue regulations to implement th[e] Section, including regulations to define terms."^[3] These regulations should promote the Act's overall objectives and prevent evasion of the requirements and restrictions included in Section 3.

More generally, with respect to the regulations that must be issued under the GENIUS Act, it is critical that Treasury and the primary Federal payment stablecoin regulators coordinate across all rulemakings. This coordination is not only expected by the GENIUS Act,^[4] it also would help ensure that the regulatory framework is sufficiently robust and appropriately balances innovation with safety and soundness and financial stability, protects against illicit finance, and discourages regulatory arbitrage. However, the agencies have each proposed their respective regulations on a staggered basis with insufficient comment periods. We therefore recommend that after all regulations have been proposed under the GENIUS Act and the agencies have reviewed the comments received on each proposal, Treasury and the primary Federal payment stablecoin regulators should determine whether the comprehensive set of rules will help achieve the aims of the statute or whether the agencies should propose revisions to their respective rules in coordination with one another.

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[1] The Bank Policy Institute is a nonpartisan public policy, research and advocacy group that represents universal banks, regional banks, and the major foreign banks doing business in the United States. The Institute produces academic research and analysis on regulatory and monetary policy topics, analyzes and comments on proposed regulations, and represents the financial services industry with respect to cybersecurity, fraud, and other information security issues.

[2] Department of the Treasury, Notice of Proposed Rulemaking, "GENIUS Act Regulations on Payment Stablecoin Issuance, Offer, and Sale," 91 Fed. Reg. 53,368 (Aug. 18, 2026).

[3] 12 U.S.C. § 5902(d).

[4] 12 U.S.C. § 5913(b) ("Federal payment stablecoin regulators, the Secretary of the Treasury, and State payment stablecoin regulators should coordinate, as appropriate, on the issuance of any regulations to implement [the GENIUS Act]."). See also id. § 5903(h)(2) (requiring coordination among the primary Federal payment stablecoin regulators with respect to regulations issued to carry out Section 3 of the Act).