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The US Treasury Department has launched a request for public comments aimed at combating illicit activities associated with dollar-pegged cryptocurrencies, stablecoins. 

This initiative follows the recent passage of the GENIUS Act, a comprehensive piece of legislation designed to provide a regulatory framework for the stablecoin market issuers such as Tether (USDT) and Circle (USDC) in the United States.

The request aligns with the President Donald Trump’s Administration and broader policy to promote the growth of digital assets, as outlined in Executive Order 14178, which emphasizes strengthening American leadership in digital financial technology. 

Treasury Focuses On APIs, AI, And Blockchain

The Treasury’s call for public input is a direct requirement of the recently signed into law GENIUS Act, which mandates the Department to explore innovative methods for detecting illicit activities in the digital asset space.

The Treasury is particularly interested in gathering feedback on a range of technologies that could enhance the ability of regulated financial institutions to identify and mitigate risks associated with these digital assets. 

Among the specific areas of focus are application program interfaces (APIs), artificial intelligence (AI), digital identity verification, and blockchain monitoring. 

These tools are considered essential in advancing the fight against illicit finance, although they may also pose new challenges and resource burdens for financial institutions.

In line with the GENIUS Act’s objectives, the public comments will inform research regarding the effectiveness and costs of these technologies, as well as considerations related to privacy and cybersecurity. 

The Treasury Department encourages individuals and organizations to submit their insights within 60 days, with a deadline set for October 17.

Crypto Stablecoin Regulations

The GENIUS Act, signed into law by President Trump, establishes a regulatory environment for payment crypto stablecoin issuers, emphasizing consumer protection and enhancing the US dollar’s status as a global reserve currency. 

It includes provisions for strong reserve requirements and aims to align state and federal frameworks governing stablecoins. Additionally, it mandates that payment stablecoin issuers adhere to federal laws applicable to financial institutions related to economic sanctions, anti-money laundering, and customer identification.

As part of its mandate under the GENIUS Act, the Treasury will conduct research based on public comments and will subsequently issue reports and guidance aimed at enhancing the detection of illicit activities. 

The Treasury has highlighted the importance of APIs, which serve as access points for different software applications, enabling them to communicate and share data efficiently. 

This can enhance transaction monitoring and compliance with anti-money laundering (AML) regulations. AI is also prioritized as a key innovation, enabling financial institutions to analyze vast amounts of data and identify patterns indicative of illicit finance.

Digital identity verification tools are gaining traction in the digital asset sector, helping to establish and confirm the identities of users in a secure manner. The Department highlights that these tools can facilitate compliance with AML requirements while also maximizing user privacy. 

Lastly, the focus also extends to the use of blockchain technology and monitoring allows for the tracking and analysis of transactions on public ledgers, providing valuable insights into potentially crypto illicit activities.

Featured image from DALL-E, chart from TradingView.com 

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I’m sorry this isn’t that good. I would like to ask:

1. Where can I create this “Transaction input from UTXO’s TX ID”? This is for Bitcoin Utxo.

So are you using a Bitcoin node? vscode? Python in gitpods? Just want to know where you can do this and you will be able to provide the TXID along with the transaction value. For example, in the following snapshot:

Do you care about leading me? Please…Thank you very much.

The United Kingdom’s financial watchdog is asking for the public’s opinion on crypto regulations.

The Financial Conduct Authority (FCA) says it aims to develop a “safe, competitive, and sustainable” digital asset sector.

“Long-term confidence in crypto assets depends on clear regulation to promote market integrity and appropriate consumer protection.

We are seeking input into how the unique aspects of crypto assets should be considered in our future regulatory regime. We want an open discussion on the features of the future regime, with this latest Discussion Paper (DP) seeking views on how we regulate trading platforms, intermediaries, staking, lending and borrowing, and decentralized finance. We are also seeking feedback on the use of credit to purchase crypto assets.”

The regulator says a discussion paper and its proposals were developed after extensive consultation with crypto industry professionals, digital asset consumers and stakeholders in the traditional finance sector.

The FCA aims to restrict credit card usage when buying crypto, and earlier this year, the regulator moved to ban digital asset ads, managing to cut the advertisements down by 50%.

The financial watchdog says it is now making “good progress” with tech companies in regulating the banned advertisements but is still concerned about the prevalence of scams online.

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The US Commodity Futures Trading Commission (CFTC) is seeking public feedback on the possibility of allowing round-the-clock derivatives trading and introducing perpetual futures contracts.

The move would bring traditional markets closer in line with the cryptocurrency sector, which has long operated on a 24/7 basis.

In a statement released Monday, acting CFTC Chairman Caroline Pham said the agency must take a forward-looking approach to evolving market structures. “The CFTC must take a forward-looking approach to shifts in market structure to ensure our markets remain vibrant and resilient while protecting all participants,” she said. “One evolving trend is the move to 24/7, 24/6, or 24/5 trading hours.”

CFTC Proposal Follows Industry Trend Toward Always-On Market Access

The request for comment comes as market participants increasingly push for more flexible trading windows. US equities exchanges are already expanding access. The Securities and Exchange Commission has approved 24 Exchange to operate nearly around the clock five days a week, while Nasdaq has announced similar plans. Brokers like Robinhood already allow 24-hour trading during the workweek.

Crypto exchanges, in contrast, have offered continuous trading for years. Traders can buy and sell digital assets at any hour, across borders, with high liquidity and real-time price discovery.

The CFTC’s proposal suggests a willingness to align traditional derivatives markets with this model, a shift that could increase accessibility for global participants and enhance responsiveness to macroeconomic events.

With Trump-Era Shift in Tone, CFTC Tests Market Appetite for Perps

The agency is also considering whether to allow perpetual futures, a contract type widely used in crypto markets but still largely unavailable to US traders. These contracts, known as “perps,” do not expire and are settled continuously throughout the day. Coinbase and other digital asset platforms have expressed interest in launching 24/7 and perpetual-style products in the US.

The CFTC’s role is expected to expand under the Trump administration. The agency is set to take on broader oversight of the digital asset market. This shift comes alongside recent moves to ease scrutiny over clearing and trading risks. Together, these changes signal a softer regulatory stance toward the crypto sector.

Still, the CFTC is cautious about the risks. The agency is asking for feedback on how 24/7 trading could affect trading, clearing and risk management. It is especially focused on areas like market integrity, customer protection and retail participation. Further, the agency also pointed to challenges in supervising a market that never closes.

Comments on the proposal will be accepted until May 21. The request follows a broader trend under the Trump administration to ease oversight in commodity markets. This includes reduced scrutiny of digital assets. It also signals growing regulatory interest in modernizing financial infrastructure.

The post CFTC Seeks Public Input on Crypto-Style 24/7 Derivatives Market appeared first on Cryptonews.