Key Takeaways:
- The Treasury proposed rules to implement the GENIUS Act for payment stablecoins.
- U.S. issuers will typically have to obtain a license by January 18, 2027.
- There is a 60-day period for public comment on the proposal.
The U.S. Treasury is moving the GENIUS Act from legislation toward a working regulatory framework for the U.S. stablecoin market. The latest proposal targets one of the most important questions for crypto businesses: when stablecoin activity falls under U.S. licensing and distribution rules.
.@POTUS and Congress delivered the GENIUS Act, establishing a landmark framework and clear rules of the road for payment stablecoins, and Treasury is moving quickly to implement that framework. @USTreasury welcomes input from stakeholders as we work to provide the regulatory…
— Treasury Secretary Scott Bessent (@SecScottBessent) August 17, 2026
Treasury Defines the Rules for U.S. Stablecoins
On August 17, the Treasury Department issued a Notice of Proposed Rulemaking (NPRM) covering the implementation of Section 3 of the Guiding and Establishing National Innovation for U.S. Stablecoins, known as the GENIUS Act.
The proposal aims to provide clarity on the definition of issuing a payment stablecoin “in the United States.” That definition will help determine when an issuer must obtain a federal or state license under the new law.
Additionally, the Treasury is proposing a definition of “offered or sold” to a person in the United States for a payment stablecoin. Such definitions may embroil crypto businesses either in or out of the scope of the GENIUS Act.
The department is making swift progress on the framework, which aims to provide businesses and investors with more clarity and foster innovation with cryptocurrencies in the U.S., said Treasury Secretary Scott Bessent.
Read More: FDIC Drops 190-Page Stablecoin Rulebook – GENIUS Act Sets Strict New Standards
Key GENIUS Act Deadlines
The first big Cloverleaf is on January 18, 2027, when the GENIUS Act is projected to go into effect. Since that time, it is illegal to issue a payment stablecoin in the United States without the proper federal or state license.
Also in the bill are stipulations on payment stablecoins issued abroad. Generally, digital asset service providers are not authorized to offer, sell, or otherwise make those stablecoins available unless the foreign issuer can comply with lawful U.S. orders, and meet applicable requirements under those arrangements with its home jurisdiction.
A second big restriction takes effect on August 1st, 2028. For digital asset service providers, that date marks the much-anticipated move where they will no longer be allowed to offer or sell payment stablecoins to U.S. persons without relying on stablecoins from a licensed issuer.
Treasury Opens 60-Day Crypto Industry Review
Unfortunately, the new NPRM isn’t a final rule either. The proposed implementation is being put before the public for comments and suggestions. There will be 60 days for public comment following publication of the notice in the Federal Register. Comments submitted will be made publicly accessible by the federal rulemaking process.
The proposal stems from a previous NOPR published by the Treasury in September 2025 to solicit comments on many of the detailed considerations related to implementation of the GENIUS Act.
The recent movement provides stablecoin issuers, exchanges, and crypto industry service providers, such as developers, with a chance to comment prior to the final rules in the Treasury’s hands.
Treasury’s task now is to delineate the parameters for domestic stablecoin issuers and consumers in the U.S. market before the licensing deadline in 2027.
Read More: Open USD Launches With 140+ Giants, Challenging USDC With Zero-Fee Stablecoin Model
