U.S. Treasury Unveils Proposed Rules to Implement GENIUS Act Stablecoin Regime

The U.S. Department of the Treasury on Aug. 17 released a Notice of Proposed Rulemaking (NPRM) proposing regulations to implement the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), opening a public comment process for the payment stablecoin framework. Treasury Secretary Scott Bessent said the Trump administration and Congress are moving the GENIUS Act forward to establish what he called a landmark regulatory framework with clear rules for payment stablecoins. He said Treasury is accelerating the rollout of implementing regulations, aiming to provide regulatory certainty that supports innovation and growth in the U.S., while reinforcing the dollar's role as the global reserve currency and positioning the United States as a global hub for crypto assets. Under the GENIUS Act, beginning Jan. 18, 2027, entities seeking to issue a payment stablecoin in the United States would generally need to obtain the appropriate federal or state license. The law also generally bars digital asset service providers from offering, selling, or distributing payment stablecoins issued abroad in the U.S. market unless the foreign issuer has the technical capability to meet U.S. regulatory requirements and can comply with applicable arrangements between the United States and the issuer's home jurisdiction. Starting July 18, 2028, the bill further provides that digital asset service providers generally may not offer or sell payment stablecoins to "persons in the United States" unless the stablecoin is issued by a licensed issuer. Treasury said the proposed rules focus on two core definitions: what it means to "issue a payment stablecoin in the United States", to help issuers determine when a GENIUS Act license is required; and what it means to "offer or sell a payment stablecoin to persons in the United States," to guide compliance for firms participating in the U.S. stablecoin market. Treasury said the comment period will run for 60 days after the proposal is published in the Federal Register.