Treasury Proposes Stablecoin Licensing Rules Under GENIUS Act
The US Treasury Department has proposed new licensing rules for payment stablecoin issuers under Section 3 of the GENIUS Act, which could significantly impact the digital asset market.
The proposed rulemaking was issued on August 18 and published on August 21. Under the proposal, payment stablecoin issuers would need to obtain a federal or state license starting January 18, 2027. By July 18, 2028, digital asset service providers would be prohibited from offering unlicensed stablecoins to US persons.
The proposed rules aim to create a licensing framework for stablecoin oversight, moving it closer to the banking and payments world. Issuers would need to meet requirements around reserves, supervision, compliance, reporting, and redemption, while service providers would also need to know which stablecoins can be offered to US users.
The July 18, 2028 deadline may have a significant impact on the market, as digital asset service providers would be barred from offering unlicensed stablecoins to US persons. This could push the market toward licensed stablecoins and potentially consolidate the stablecoin market share.