Treasury Proposes GENIUS Act Rules for Stablecoin Issuers and Foreign Tokens

The U.S. Treasury Department has proposed rules for stablecoin issuers and foreign-issued tokens as part of the GENIUS Act, which aims to regulate payment stablecoins.

The proposal focuses on defining when a payment stablecoin is issued in the United States, a distinction that has significant consequences for companies such as stablecoin issuers, crypto exchanges, and digital-asset service providers.

The GENIUS Act restricts digital-asset service providers from offering or selling non-qualifying stablecoins to U.S. customers unless the token is issued by an approved U.S. issuer or meets specific statutory conditions for foreign issuers.