Treasury Proposes Rules for Stablecoin Issuers Under GENIUS Act

The Treasury Department has proposed rules for implementing the GENIUS Act, a law passed last year that sets up a regulatory framework for stablecoins. The act's Section 3 discusses the fundamental architecture of the payment stablecoin market in the United States and prescribes who may issue, offer, sell or otherwise make available payment stablecoins.

Starting January 18, 2027, any person generally cannot 'issue a payment stablecoin in the United States' unless they have obtained an appropriate federal or state license. Digital asset service providers generally can't offer, sell or otherwise make available foreign-issued payment stablecoins unless the foreign issuer has the technological capability to comply with, and will comply with, the terms of any lawful order and any reciprocal arrangement between the U.S. and the issuer's home jurisdiction.

Starting July 18, 2028, 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.