Treasury Unveils Stablecoin Licensing Rules Under GENIUS Act

Treasury Secretary Scott Bessent has announced that the Treasury is moving quickly to implement the GENIUS Act, which sets out licensing rules for stablecoins in the United States.

The GENIUS Act defines what it means to issue a payment stablecoin in the US and clarifies when an issuer needs a license. Starting January 18, 2027, no one can issue a payment stablecoin without an appropriate federal or state license.

Foreign issuers will also face additional requirements, with providers barred from offering their stablecoins unless they comply with lawful US orders and any reciprocal arrangements with the issuer's home country.

Bessent posted on X that Donald Trump and Congress delivered the GENIUS Act as a landmark framework for payment stablecoins. He welcomed input from stakeholders as the Treasury works to provide regulatory certainty for businesses.