The US Department of the Treasury launched a public comment period seeking input on innovative technologies that financial institutions could use to detect illicit activity involving digital assets, including artificial intelligence and blockchain monitoring tools.
The request fulfills requirements under the GENIUS Act, the stablecoin legislation signed by President Trump in July that creates regulatory frameworks for digital payment tokens while strengthening anti-money laundering controls.
The US Treasury is specifically seeking comment on four key technologies: application program interfaces (APIs), artificial intelligence, digital identity verification, and blockchain technology monitoring.
The department said these tools are critical to protecting the digital asset ecosystem from drug traffickers, ransomware attackers, terrorist financiers, and state-sponsored cybercriminals from Iran and North Korea.
The comment period, running through October 17, supports the Trump administration’s broader digital asset policy outlined in January’s Executive Order “Strengthening American Leadership in Digital Financial Technology,” which aims to promote responsible growth while maintaining robust compliance frameworks.
The Treasury noted that AI is playing an increasing role in sanctions compliance, offering solutions to analyze large amounts of transaction data and identify illicit finance patterns.
Blockchain monitoring allows institutions to track pseudonymous transactions on public ledgers and evaluate high-risk counterparties.
The department acknowledged that innovative compliance tools may present resource burdens for financial institutions due to acquisition costs and the need to build expertise with novel technologies.
Following the comment period, Treasury will conduct research on submitted methods and provide legislative and regulatory proposals to Congress. The department will also issue guidance or initiate rulemaking based on the findings.
The GENIUS Act requires permitted stablecoin issuers to be treated as financial institutions under the Bank Secrecy Act, subjecting them to federal anti-money laundering, sanctions, and customer identification requirements.
Comments must be submitted electronically through the Federal eRulemaking Portal.
