U.S. Treasury proposes stablecoin issuance rules under GENIUS Act

Traders Union
All News
Financial News
Treasury stablecoin GENIUS rules

Highlights

Treasury issued a Notice of Proposed Rulemaking to define stablecoin issuance and sales under the GENIUS Act, seeking public comment on implementation.
From January 18, 2027, stablecoin issuers in the U.S. generally must hold a federal or state license, with restrictions on foreign-issued payment stablecoins unless compliant with U.S. orders.
Effective July 18, 2028, digital asset service providers generally may not offer stablecoins in the U.S. unless the stablecoins are issued by licensed issuers, clarifying market rules and timelines.

Proposed framework for U.S. stablecoin licensing

According to U.S. Department of the Treasury, Treasury said in a press release that it has issued a Notice of Proposed Rulemaking to seek public comment on how it will implement section 3 of the GENIUS Act, a law that establishes a regulatory framework for payment stablecoins in the U.S. The proposal is intended to clarify when a person is considered to "issue a payment stablecoin in the United States" and when a token is deemed to be offered or sold to a person in the U.S.

Treasury Secretary Scott Bessent said the department is moving quickly to implement the law and is seeking stakeholder input as it works to provide regulatory certainty for businesses. He said the framework is aimed at supporting innovation and growth in America while reinforcing the U.S. dollar's role as the world's reserve currency.

Under the law, beginning on January 18, 2027, a person generally may not issue a payment stablecoin in the U.S. unless that person has obtained an appropriate federal or state license. The proposal also addresses foreign-issued payment stablecoins, which digital asset service providers generally may not offer, sell, or otherwise make available unless the foreign issuer can comply with lawful orders and reciprocal arrangements with U.S. authorities.

Industry timeline and market implications

Beginning on July 18, 2028, digital asset service providers generally may not offer or sell any payment stablecoins to persons in the U.S. unless those stablecoins are issued by a licensed issuer. Treasury said the proposed definitions are designed to give the industry greater clarity on when a GENIUS license is required and how payment stablecoins can be marketed in U.S. markets.

The department is inviting comments from a broad range of stakeholders within 60 days of publication in the Federal Register, and submissions will be publicly available on Regulations.gov. Treasury said the proposal builds on an advance notice issued last September that also sought public input on implementing the GENIUS Act.

Our earlier report on the OCC’s conditional approval of a national trust bank charter for World Liberty Trust Company highlighted how federal supervision could enable the group to issue its USD1 stablecoin directly and custody the dollar reserves backing it. The piece also noted the broader significance of federal charters for crypto firms seeking a nationwide framework for stablecoin services, alongside the political scrutiny surrounding the Trump-linked venture.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.