Treasury Proposes Stablecoin Rules as Issuance Ban Looms

The U.S. Treasury Department has published a proposal for rules governing stablecoin issuance in the United States, and public comments are due by October 19. The GENIUS Act, which restricts who can issue payment stablecoins in the country, is expected to take effect on January 18, 2027.

The proposal defines what constitutes 'issuing' a stablecoin as the first transfer of tokens by an issuer that results in another person obtaining the right to use or redeem them. This means simply minting tokens does not necessarily constitute issuance if the issuer continues holding them.

Treasury is seeking feedback on dozens of specific questions, including how indirect transfers through smart contracts should be treated and when redeemed tokens become newly issued again. Foreign issuers face additional requirements, with platforms needing to conduct reasonable due diligence before listing foreign-issued stablecoins.