The U.S. Department of the Treasury is seeking public comment on a proposed rule that outlines the Treasury’s implementation of section 3 of the Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS, Act.
Effective January 18, 2027, the GENIUS Act mandates that a person generally may not “issue a payment stablecoin in the United States” unless the person has obtained an appropriate federal or state license.
Further, the law states that digital asset service providers generally may not offer, sell, or otherwise make available foreign-issued payment stablecoins unless the foreign issuer has the technological capability to comply with the terms of any lawful order between the United States and the issuer’s home jurisdiction.
Effective July 18, 2028, the Genius Act further provides that digital asset service providers generally may not offer or sell any payment stablecoins to persons “in the United States” unless the payment stablecoins are issued by a licensed issuer.
“Treasury welcomes input from stakeholders as we work to provide the regulatory certainty businesses need to innovate and grow in America, cement the role of the U.S. dollar as the world’s reserve currency, and keep America the crypto capital of the world,” Treasury Secretary Scott Bessent said.
The Treasury proposed a framework for implementing these requirements. By defining what it means to “issue a payment stablecoin in the United States,” the proposed rule would provide clarity to industry regarding when an issuer needs to obtain a GENIUS license. And by defining what it means to “offer or sell” a payment stablecoin to a person “in the United States,” the proposed regulation would provide clarity to industry regarding when and how payment stablecoins can be offered or sold in U.S. markets.
Now, the Treasury is inviting the public to offer comments that may be useful for Treasury to consider. Members of the public should submit comments within 60 days of publication in the Federal Register.