The U.S. Treasury is being called upon to adopt advanced technology as part of its push for improved crypto compliance, following the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This Act, signed into law in July 2025, sets out a comprehensive federal framework for regulating payment stablecoins—digital assets pegged to traditional currencies. As directed by the law, Treasury is now gathering public input on ways technology can help financial institutions more effectively detect illicit activity within the crypto ecosystem.

The Treasury’s recent request for public comment specifically seeks insights from industry experts, innovators, and consumers on the use of cutting-edge tools. Among the methods highlighted are application programming interfaces (APIs), artificial intelligence (AI) for analyzing transactions and detecting complex illegal networks, digital identity verification systems, and blockchain monitoring tools that can track illicit finance activity across both on-chain and off-chain data. These efforts are part of a broader initiative to strengthen anti-money laundering and counter-terrorism financing measures in the rapidly evolving digital asset space.

By involving the public and industry stakeholders, Treasury aims to balance innovation and security. The goal is to create regulations that not only address potential threats, including fraud and sanctions evasion, but also encourage responsible growth of digital assets in the U.S. New technologies—such as AI-powered analytics, portable digital credentials, and more robust blockchain surveillance—are expected to increase transparency and enhance compliance. However, Treasury is also considering concerns around operational costs, data sensitivity, privacy, and cybersecurity risks associated with these new approaches.

The public comment period represents a significant step in shaping rules that will impact stablecoin issuers, service providers, and the broader digital finance sector in the years to come. Treasury plans to use the feedback to inform future regulations, and further opportunities for public input are expected before any final rules are adopted. This collaborative approach positions the U.S. to strengthen its leadership in financial technology, promote regulatory clarity, and support the safe expansion of digital assets and services.