Nikolas Sargeant
TL;DR
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The US Treasury Department has opened a public consultation on rules implementing Section 3 of the GENIUS Act.
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The legislation generally requires payment stablecoin issuers operating in the US to obtain a federal or state licence.
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Proposed regulations would clarify when stablecoins are considered issued, offered or sold in the US.
The US Treasury Department is seeking public feedback on proposed regulations implementing the GENIUS Act, the country’s landmark payment stablecoin legislation signed into law last year.
The department issued a Notice of Proposed Rulemaking on Monday addressing Section 3 of the Guiding and Establishing National Innovation for US Stablecoins Act.
The proposal focuses on licensing requirements and restrictions governing the issuance, offering, and sale of payment stablecoins.
Treasury Advances GENIUS Act Implementation
The GENIUS Act is expected to take effect on January 18, 2027. Under the legislation, entities will generally be prohibited from issuing payment stablecoins in the United States without securing an appropriate federal or state licence.
The law also places restrictions on digital-asset service providers offering or selling foreign-issued payment stablecoins. Foreign issuers must be capable of complying with US legal orders and any applicable reciprocal regulatory arrangements.
Treasury Secretary Scott Bessent said the consultation would help the department provide the regulatory certainty businesses need to innovate and expand within the United States.
He added that the stablecoin framework could strengthen the US dollar’s position as the world’s reserve currency while supporting the country’s ambition to become a leading global centre for cryptocurrency innovation.
The Treasury’s proposed regulations aim to establish when a payment stablecoin is considered to have been issued in the United States.
The department is also seeking to clarify when an issuer or digital-asset service provider should be regarded as offering or selling a stablecoin to a US person.
These definitions will be important for determining which companies, tokens and transactions fall within the GENIUS Act’s jurisdiction. They could also affect cryptocurrency exchanges, wallet providers, payment processors and other platforms serving US customers.
The proposal builds on an advance notice of proposed rulemaking that the Treasury issued in September. Feedback collected during the new consultation will help shape the final regulatory framework.
Unlicensed Stablecoins Face Restrictions from July 2028
President Donald Trump signed the GENIUS Act into law in July 2025, establishing the first major federal regulatory framework for payment stablecoins in the United States.
Beginning July 18, 2028, digital-asset service providers will generally be prohibited from offering or selling payment stablecoins to US users unless the tokens were issued by an appropriately licensed entity.
The delayed deadline gives stablecoin issuers and service providers time to obtain approval, adjust their operations and establish the compliance systems required under the new framework.
Foreign stablecoin issuers seeking access to the US market may also need to demonstrate that they can comply with American legal orders and operate under acceptable reciprocal arrangements.
The Treasury invited cryptocurrency companies, financial institutions, consumer groups and other interested parties to provide feedback on the proposed regulations.
The public comment period will remain open for 60 days after the Notice of Proposed Rulemaking appears in the Federal Register.
Industry responses could influence how Treasury defines US issuance and sales activity, as well as how the rules apply to foreign tokens and digital-asset platforms operating across multiple jurisdictions.
Following the consultation, Treasury will review the submissions before developing final rules to implement the GENIUS Act.
