The U.S. Treasury is seeking opinions on stablecoin regulations, and USDT and USDC holders may be significantly impacted by taxes.

The U.S. Department of the Treasury is seeking public comments on the implementation of the "Guidance and Establishment of the U.S. Stablecoin National Innovation Act" (GENIUS), which is the first legislation specifically targeting Crypto Assets passed in the U.S. this summer. This initiative could have far-reaching effects on the stablecoin market, particularly regarding tax treatment and foreign issuer access.

The Ministry of Finance focuses on stablecoin taxation and foreign issuers issues

U.S. Treasury officials stated in a press release issued later on Thursday: "The GENIUS Act requires the Treasury to issue regulations that encourage innovation in the payment of stablecoins, while providing appropriate tailored frameworks to protect consumers, mitigate potential illegal financial risks, and address financial stability risks."

In particular, the Treasury is seeking data and other information to adjust its guidelines under the GENIUS Act during the process of federal agencies developing formal proposals. This includes comments from critics and industry insiders. The comment period will end on October 20.

Stablecoin Tax Treatment Becomes the Focus

Officials from the Treasury Department specifically pointed out that the "GENIUS Act" "does not involve the federal income tax characteristics of payment stablecoins," which may leave room for interpretation by the IRS regarding this law. This issue is crucial for stablecoin holders and issuers, as it will determine whether stablecoin transactions are considered taxable events and how the related taxes are calculated.

Currently, cryptocurrencies are generally considered property rather than currency in the United States, which means that each transaction could potentially incur capital gains tax. If stablecoins receive special tax treatment, it could significantly change their usage and adoption in payment systems.

Foreign Issuer Access Issues to be Resolved

Similarly, the GENIUS Act also includes a provision that allows foreign issuers to issue stablecoins in the United States, but it is currently unclear when approval will be granted. This issue is particularly important for stablecoin issuers like Tether that primarily operate outside the United States, and it may also affect the competitive landscape of the global stablecoin market.

Other Key Regulatory Issues

The Ministry of Finance has also raised several other regulatory issues that need to be addressed:

· Should there be a marketing ban on stablecoins?

· How to balance state and federal oversight

· In what situations does the Bank Secrecy Act (BSA) apply?

· Specific implementation methods for Anti-Money Laundering (AML) and sanction obligations

Last month, the department submitted a specific request for comments related to the detection of illegal use of digital assets, indicating that regulators are conducting a comprehensive review of various aspects of the Crypto Assets ecosystem.

Trump Administration's Support for Stablecoins

With the support of President Donald Trump, GENIUS passed in July in the U.S. Congress led by the Republican Party. Trump stated that he hopes the stablecoin legislation can be submitted to him for signing before August as part of his executive power to reform the regulatory environment in the United States.

This support marks a significant shift in Trump's stance on Crypto Assets and reflects the Republican Party's determination to establish America's leadership in the global digital asset competition.

The Importance of Industry Participation

For participants in the Crypto Assets industry, this public consultation is a rare opportunity to directly influence the formation of the U.S. stablecoin regulatory framework. Industry associations, stablecoin issuers, exchanges, and other stakeholders should actively engage in this process to provide valuable insights regarding practical operational challenges and best practices.

As the deadline for comments approaches on October 20, a substantial amount of feedback is expected from the industry and the public. These opinions will largely shape the future regulatory environment for stablecoins in the United States and may have far-reaching effects on the global Crypto Assets market.