GENIUS Act Stablecoin Rules Inch Closer to Reality

The GENIUS Act, passed in July 2025, established a framework for payment stablecoins in the US, but its rules are still being finalized by regulatory agencies. The act requires implementing rules to translate statutory guardrails into operational requirements, covering issues like authorisation, reserves, reporting, capital, liquidity, and risk management.

The Treasury, a central player in shaping the framework, published a proposal on August 17, 2026, which outlines the scope of payment stablecoins issued in the US, their requirements, exemptions, and safe harbors. The proposal sets January 18, 2027, as the expected effective date for licensing requirements on issuance in the US.

The OCC, the US supervisor for certain federally supervised banks and institutions, published a draft rule in March 2026, focusing on capital and liquidity requirements, operational risk, governance, and ongoing supervision for issuers under OCC jurisdiction.

Market watchers can track the progress of the GENIUS Act's implementation through key milestones: the act's passage on July 18, 2025; the Treasury's proposal on August 17, 2026; the expected effective date of January 18, 2027; and a further statutory deadline on July 18, 2028.