Treasury Unveils Draft Rule for GENIUS Act Stablecoin Regulation

The U.S. Treasury Department has released a draft rule for implementing the GENIUS Act, a landmark stablecoin regulation law. The proposal outlines detailed standards for how the law's requirements will be applied, including issuer licensing and restrictions on circulating stablecoins in the United States.

Under the GENIUS Act, businesses seeking to issue payment stablecoins in the U.S. must obtain federal or state authorization. Overseas issuers that fail to meet certain requirements will be restricted from circulating their stablecoins in the U.S. market.

Treasury Secretary Scott Bessent emphasized that clear regulation would support innovation by U.S. companies while reinforcing the dollar's role as the world's reserve currency and positioning the United States as a global crypto hub.