The Treasury Department has opened a 60-day comment period on proposed rules for the GENIUS Act, aiming to clarify stablecoin issuance and compliance requirements before the law takes effect in January 2027
The U.S. Department of the Treasury has launched a 60-day public comment period on proposed rules for the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, a federal law set to reshape stablecoin regulation when it takes effect on January 18, 2027. The move marks a critical step in defining how payment stablecoins will be issued, offered, and sold to U.S. persons under the new framework, according to documentation published by the Treasury.
Defining Stablecoin Issuance
The proposed rules focus on clarifying what it means to "issue" a payment stablecoin in the United States and which entities fall under the law's scope. Treasury officials say they are drawing on established securities law concepts while recognizing that stablecoins represent a distinct category of digital asset. The department is seeking feedback on how to distinguish between direct issuers, intermediaries, and foreign entities that may offer stablecoins to U.S. users. The definitions will determine which companies must obtain federal or state licenses to operate legally once the GENIUS Act is in force.
Regulatory Deadlines and Industry Impact
Multiple federal agencies, including the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and Federal Reserve Board, are required to finalize their own rules before the GENIUS Act's effective date. All three agencies published proposed rules in 2026 but missed the July deadline to finalize them, raising the likelihood that the law will take effect without complete regulatory guidance. Treasury Secretary Scott Bessent has stated that the administration is prioritizing regulatory clarity to reinforce the U.S. dollar's global role and maintain the country's leadership in digital assets. The GENIUS Act will prohibit any entity from issuing payment stablecoins in the U.S. without a federal or state license, and from July 18, 2028, digital asset service providers will generally be barred from offering or selling payment stablecoins to U.S. persons unless those tokens are issued by a licensed entity.
Foreign Issuers and Congressional Activity
Foreign stablecoin issuers, including major players like Tether, will face heightened scrutiny under the proposed rules, particularly regarding their ability to comply with U.S. legal orders and reciprocal arrangements. The regulatory process is unfolding alongside separate legislative efforts in Congress, such as the Digital Asset Market Clarity (CLARITY) Act, which would amend parts of the GENIUS Act but has stalled in the Senate. The Treasury's public comment window will close in mid-October, after which the department will review submissions and move toward finalizing the rules. International regulatory cooperation is also in focus, with the UK-US Financial Regulatory Working Group meeting in London in July 2026 to discuss GENIUS Act implementation and broader financial regulation. Some industry observers have warned that the UK could fall behind the U.S. as American stablecoin rules advance.
For context on how federal requirements are shaping digital asset firms, see this analysis of the OCC national trust bank charter process for crypto companies.
According to the Treasury's notice, the GENIUS Act was signed into law in July 2025 and is scheduled to take effect on January 18, 2027. The law's transition period is designed to give stablecoin issuers and service providers time to adapt to new licensing and compliance requirements. The proposed rules are open for public comment until mid-October 2026, after which the Treasury will review feedback and issue final regulations. The law's phased implementation means that some requirements, such as restrictions on unlicensed stablecoin offerings to U.S. persons, will not take effect until July 2028.
Stablecoin regulation in the U.S. is evolving rapidly, with the GENIUS Act representing the first comprehensive federal framework for payment stablecoins. Unlike earlier state-level approaches, the law aims to create uniform standards for licensing, compliance, and enforcement. This shift could have significant implications for stablecoin issuers, exchanges, and users, especially as global regulatory coordination becomes more important. The outcome of the Treasury's rulemaking process will help determine how stablecoins are integrated into the broader U.S. financial system and what risks and opportunities they present for market participants.
