US Treasury Sets Deadline for Offshore Stablecoin Access to US Customers

The US Treasury Department has proposed rules for the GENIUS Act, which aims to regulate offshore stablecoins' access to US customers. By July 18, 2028, a digital asset service provider won't be able to offer or sell a payment stablecoin to someone in the United States unless its issuer fits one of the law's permitted categories.

The proposal doesn't ban an offshore token from circulating abroad or moving between private wallets; it just controls how regulated businesses distribute that token inside the US. For Tether's USDT, the biggest issue is whether an American exchange can keep offering it to customers, even though the token itself would continue to exist and function on-chain.

The Treasury Department expects the broader regime to take effect on January 18, 2027, giving issuers and the platforms carrying their tokens 18 more months to prepare for the larger distribution restriction in 2028. Companies will have to decide whether every single stablecoin on their platform has a valid route under GENIUS.

Treasury also gives 'offer or sell' a much wider meaning, which includes advertising a stablecoin, agreeing to sell it, or telling someone who contacted the company first that it is willing to complete the trade. Helping a customer get around geolocation controls can count as well.