Treasury Unveils Stablecoin Licensing Rules Under GENIUS Act

The US Treasury Department has proposed new licensing rules for payment stablecoin issuers under Section 3 of the GENIUS Act. The proposal, which was issued on August 18 and published on August 21, would require payment stablecoin issuers to obtain a federal or state license starting January 18, 2027. This is part of a broader effort to regulate digital assets in the US.

The proposed rulemaking also includes a July 18, 2028 deadline for digital asset service providers to stop offering unlicensed stablecoins to US persons. Public comments are open until October 19, 2026, and stakeholders are expected to weigh in on the proposal.

The proposal aims to create a licensing framework that would move stablecoin oversight closer to the banking and payments world. Issuers would need to meet requirements around reserves, supervision, compliance, reporting, and redemption, while service providers would also need to know which stablecoins can be offered to US users.