Key Highlights
- The Treasury has proposed new rules to implement the GENIUS Act and is seeking public comments.
- Stablecoin issuers will generally need a federal or state license to issue payment stablecoins in the U.S. from January 18, 2027.
- Treasury is giving the public 60 days to submit comments on the proposed stablecoin rules.
The U.S. Treasury has started the next step in putting the GENIUS Act into action, as it seeks public comments on proposed rules for payment stablecoins.
Treasury Secretary Scott Bessent in a release published on Monday, August 17, said that the department is moving quickly to build the rules, ahead of the law’s expected January 2027 effective date.
Treasury issued a Notice of Proposed Rulemaking (NPRM) covering Section 3 of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The proposal is meant to answer a simple but important question for crypto businesses: when does a company count as issuing a payment stablecoin in the United States, and when can those stablecoins be offered or sold in the country?
“President Trump and Congress delivered the GENIUS Act, establishing a landmark framework and clear rules of the road for payment stablecoins, and the Treasury is moving quickly to implement that framework,” Bessent said.
He added that the Treasury wants to hear from businesses and other stakeholders while the rules are being developed. According to Bessent, the department wants to give businesses clearer rules so they can build and grow in the U.S., while also supporting the role of the U.S. dollar and the country’s position in the crypto industry.
What the new treasury proposal covers
The proposed rules come as the GENIUS Act moves closer to becoming fully effective. Starting from January 18, 2027, a person generally will not be allowed to issue a payment stablecoin in the United States without the right federal or state license.
That means stablecoin issuers will need to meet the licensing rules before they can legally issue these tokens in the U.S. market.
Stablecoin issuers face new licensing rules
The rules also cover stablecoins issued outside the United States. Digital asset service providers generally will not be allowed to offer, sell or make foreign-issued payment stablecoins available unless the foreign issuer can meet the required conditions.
This includes having the technology to comply with lawful U.S. orders and meeting the terms of any required arrangement between the United States and the issuer’s home country.
Foreign stablecoins also face new conditions
There will also be another deadline on July 18, 2028. From this particular date, digital asset service providers generally cannot offer or sell payment stablecoins to people in the United States unless the stablecoins were issued by a licensed issuer.
For the industry, Treasury’s proposal is mainly about making the new rules easier to understand. It would explain when an issuer needs a GENIUS license and when a stablecoin can be offered or sold in the U.S. This gives companies a clearer idea of what they will need to do as the law takes effect.
Industry welcomes the new proposal
Meanwhile, some industry leaders are already welcoming the rule. In a post on X, Anthony Broderick, founder of Lucid Labs, said the GENIUS Act could help expand dollar-based financial activity while creating demand for short-term U.S. debt. He also pointed to the growing link between stablecoins and real-world asset tokenization.
Chrsis Barrest from Chainlink said “Regulatory clarity is how America becomes the crypto capital of the world and stay the center of global finance.“
Treasury opens the door for public comments
The Treasury is now giving the public 60 days after the NPRM is published in the Federal Register to send comments. The agency said it welcomes views from a wide range of stakeholders, and the comments will be publicly available through Regulations.gov. The latest proposal also follows an earlier request for public input that the Treasury issued in September 2025 as part of its work on the GENIUS Act.
GENIUS Act moves closer to full implementation
The GENIUS Act was signed into law by President Donald Trump on July 18, 2025. The law created a federal framework for payment stablecoins, which are digital tokens designed to keep a stable value, often by tracking a currency such as the U.S. dollar.
One year after the law was signed, the Treasury is now turning the framework into detailed rules. With January 2027 approaching, the latest proposal gives stablecoin issuers and digital asset businesses a closer look at the rules they will need to follow in the U.S. market.
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