Treasury Seeks Public Input on GENIUS Act Stablecoin Regulations

The US Treasury Department has launched a public consultation period for its proposed framework on stablecoin regulations under the GENIUS Act. The law, enacted in July 2025, is set to become operational on January 18, 2027.

Treasury Secretary Scott Bessent emphasized the department's commitment to delivering 'regulatory certainty businesses need to innovate and grow in America.' He stated that the initiative aims to preserve the US dollar's status as the global reserve currency while establishing the United States as the leading hub for cryptocurrency innovation.

The proposed framework requires payment stablecoin issuers to obtain federal or state licensing to operate within the United States. Foreign entities issuing payment stablecoins will also face regulatory constraints, and digital asset platforms will be barred from facilitating or distributing foreign payment stablecoins to American customers unless the overseas issuer demonstrates compliance with US legal mandates and maintains appropriate reciprocal agreements.