Treasury Proposes Stablecoin Regulation, Exposing Some Protocols to Delisting Risk
The U.S. Department of the Treasury has published a Notice of Proposed Rulemaking to implement Section 3 of the GENIUS Act, which aims to regulate stablecoin issuers in the country.
The proposed rules establish two compliance deadlines: January 18, 2027, and July 18, 2028. Before these dates, no person can issue a payment stablecoin without a federal or state license, and digital asset service providers cannot offer or sell foreign-issued stablecoins unless the issuer complies with U.S. regulations.
The impact of this regulation on blockchain protocols depends on their stablecoin supply composition. Protocols like Hyperliquid, Arbitrum, Polygon, Solana, Ethereum, XRP Ledger, and Tron will be affected differently due to varying percentages of licensed issuers in their stablecoin supplies.