US Treasury Proposes GENIUS Act Rules for Stablecoin Issuers Amid Market Decline

The US Treasury has proposed rules for stablecoin issuers under the GENIUS Act, which is set to take effect in January 2027. The legislation aims to establish a framework for stablecoins and restrict foreign issuers.

The proposed rules target Section 3 of the GENIUS Act, which addresses stablecoin issuance, offers, and sales in US markets. The Treasury has opened the proposal for public comment, with a deadline set at 60 days or until mid-October.

The market cap of stablecoins remains below its 2026 peak, losing nearly $10 billion since the beginning of the year. Tether's USDT held roughly $184 billion in circulating market value, giving it close to 60% market dominance.