$GENIUS Act Regulation Takes Shape with Key Dates Revealed

The U.S. Treasury Department has issued a draft regulation to implement Section 3 of the $GENIUS Act, which aims to regulate the stablecoin market.

The proposed framework outlines key rules for enforcing the act, including conditions under which companies can issue stablecoins in the U.S. and terms for offering foreign-issued stablecoins to U.S. users.

The regulation defines 'issuing payment stablecoins in the U.S.' and clarifies when companies are required to obtain licenses under the $GENIUS Act, reducing uncertainty in the industry.

The Treasury Department also sets conditions for stablecoins issued abroad, requiring foreign issuers to be technically capable of executing lawful orders from U.S. authorities and comply with reciprocal regulations between the U.S. and their country.

The regulation proposes two key dates: January 18, 2027, when individuals or entities without a suitable license will generally be unable to issue stablecoins for payment purposes in the United States, and July 18, 2028, when digital asset service providers will only be permitted to offer or sell licensed payment stablecoins to users in the U.S.