Welcome to the Top 3 Innovations in Payments News Headlines for the week of August 18. This week's highlights start with the U.S. Department of the Treasury inviting public comments on the proposed GENIUS Act, which aims to guide and establish a national framework for innovation in U.S. stablecoins. This initiative could play a key role in shaping the future of digital currency regulation and adoption across the country. Additionally, the federal government will stop issuing paper checks for most federal payments starting September 30, 2025. This move underscores the government's commitment to modernizing payment systems and shifting toward faster, more secure digital disbursements.
Meanwhile, real-time payments continue to gain momentum. The RTP network operated by The Clearing House Payments Co. LLC saw notable growth during both the Memorial Day and July 4 weekends. Memorial Day alone recorded 860,268 transactions totaling $2.6 billion-an impressive increase compared to the 677,061 transactions worth $307.9 million during the same holiday in 2024.
Read on to explore how these developments are shaping the payments landscape.
1. Treasury Issues Request for Comment Related to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act (Treasury Dept.)
Today, the U.S. Department of the Treasury issued a Request for Comment required by the GENIUS Act, which furthers the Administration's policy of supporting the responsible growth and use of digital assets, as outlined in Executive Order (E.O.) 14178 on "Strengthening American Leadership in Digital Financial Technology." Today's request for comment fulfills Treasury's obligation pursuant to section 9(a) of the GENIUS Act, which creates a comprehensive regulatory framework for stablecoin issuers in the United States. The GENIUS Act and E.O. 14178 together promote U.S. leadership in digital assets and bolster U.S. national security. (Read more.)
2. Treasury Announces Federal Government Will Phase Out Paper Checks on September 30th (Treasury Dept.)
The U.S. Department of the Treasury announced that the federal government will stop issuing paper checks for most federal payments on September 30, 2025. If you are one of the few people who still receives a federal benefit check, it's time to switch to an electronic payment method. "Reducing paper checks has been a longstanding bipartisan goal that our administration is finally putting into action. Thanks to President Trump, this will help reduce fraud and theft. It will also remove delays that prevent hardworking Americans from receiving their vital payments," said Secretary of the Treasury Scott Bessent. (Read more.)
3. No Summer Holiday for RTP As Volume Increases (Digital Transactions)
Taking time off and getting away may be top-of-mind for many in the summer, but the payments system has little time for that, especially real-time payments networks. Real-time payments over the RTP network from The Clearing House Payments Co. LLC, increased over both the Memorial Day and July 4 weekends, with Memorial Day volume at 860,268 transactions valued at $2.6 billion, compared with 677,061 transactions at $307.9 million for the 2024 holiday. TCH advises that it raised its transaction limit on Feb. 9 to $10 million from $1 million. (Read more.)
How could the U.S. Treasury's push for digital currency regulation and nationwide adoption, along with the federal government's plan to eliminate paper checks, change the future of payments? What are the potential impacts of these changes on your financial institution, and how might they affect your members and clients?
Check back soon for our next edition, which will spotlight the industry's most pressing developments.
 |
... |
AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.
|