The U.S. Treasury Department is taking significant steps toward regulating the stablecoin market with the announcement of a Notice of Proposed Rulemaking related to the GENIUS Act. This legislation, signed into law by President Trump in July 2025, is set to become effective on January 18, 2027, and will require entities to obtain either a federal or state license to issue payment stablecoins in the United States.
Treasury Secretary Scott Bessent emphasized the department’s commitment to providing the regulatory certainty that businesses need to innovate and grow within the American economy. His statements reflect a broader ambition to maintain the U.S. dollar’s status as the world’s reserve currency and to position the United States as a leader in the global cryptocurrency space.
Licensing Requirements for Stablecoin Issuers
Under the provisions of the GENIUS Act, any entity wishing to issue payment stablecoins in the U.S. will need to secure the necessary licensing. This requirement extends not only to domestic issuers but also to foreign entities looking to offer stablecoins to U.S. users. Specifically, digital asset service providers will be barred from selling foreign-issued payment stablecoins unless those foreign issuers are compliant with U.S. legal orders and any required reciprocal arrangements.
Starting July 18, 2028, providers will be prohibited from offering payment stablecoins to U.S. persons unless the tokens are issued by licensed entities. This move is designed to establish a clear regulatory framework for stablecoins and to ensure consumer protection in the burgeoning digital currency market.
The proposed rules also aim to clarify definitions surrounding what constitutes a stablecoin being “issued” in the U.S. These clarifications will help delineate when an issuer or service provider is considered to be offering or selling a stablecoin to U.S. individuals.
The current notice builds upon an earlier advance notice of proposed rulemaking issued by the Treasury in September, signaling an ongoing commitment to refining the regulatory environment for cryptocurrency.
Agencies Fall Short of Key Deadlines
While the Treasury is actively working on the implementation of the GENIUS Act, it is not the only agency involved. The Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve Board also released their own proposed rules in 2026. However, all these agencies reportedly missed the critical 120-day deadline to finalize regulations ahead of the impending January 2027 effective date. This could lead to the law going into effect without fully finalized guidance, raising concerns among industry stakeholders.
In July, representatives from the UK and U.S. Financial Regulatory Working Group convened in London to discuss cooperation on various financial regulations, including the implementation of the GENIUS Act. Observers in the cryptocurrency sector have noted that the U.K. appears to be lagging behind the U.S. in terms of stablecoin regulation.
The public comment period for the proposed rules will remain open for 60 days following their publication in the Federal Register. The Treasury has expressed its eagerness to receive input from industry participants and other stakeholders as it shapes the final regulatory framework.
