US Treasury Proposes Rules Limiting Access to Certain Stablecoins for American Customers

The US Treasury Department has proposed rules that would limit access to certain stablecoins for American customers. Starting January 18, 2027, digital asset service providers will need to enter the GENIUS regime to issue payment stablecoins in the United States. However, it's not until July 18, 2028, that the wider rule takes hold, and covered providers can only carry tokens from permitted issuers or qualifying foreign issuers.

The proposal would affect how regulated businesses distribute stablecoins inside the US, but wouldn't ban offshore tokens from circulating abroad or moving between private wallets. The Treasury Department expects the broader regime to take effect in 18 months, giving issuers and platforms time to prepare for the larger distribution restriction in 2028.

Treasury is currently seeking public input on whether technical checks, including examining a foreign issuer's smart contracts, should become part of the final rule. This would require exchanges to confirm that an issuer can seize, freeze, or burn tokens when legally required, potentially bringing the stablecoin's code into the regulatory process.