Key Highlights
- Treasury Department has published a Notice of Proposed Rulemaking regarding GENIUS Act stablecoin regulations
- Implementation date is scheduled for January 18, 2027
- Payment stablecoin issuers must obtain federal or state licensing to operate in the United States
- Multiple regulatory agencies including OCC, FDIC, and Federal Reserve published proposed frameworks but failed to meet the July finalization deadline
- Stakeholders have 60 days following Federal Register publication to submit comments
The Treasury Department has launched a public consultation process for implementing the GENIUS Act, the landmark stablecoin legislation that President Trump enacted in July 2025.
On Monday, Treasury released its Notice of Proposed Rulemaking addressing Section 3 of the Guiding and Establishing National Innovation for US Stablecoins Act, inviting public participation in shaping the final regulations.
The legislation is slated to become operative on January 18, 2027. This effective date arrives either 120 days following the completion of final agency rules or 18 months after presidential signature, depending on which milestone occurs earlier.
Treasury Secretary Scott Bessent emphasized the department’s commitment to delivering “regulatory certainty businesses need to innovate and grow in America.” He highlighted objectives including maintaining the US dollar’s status as the global reserve currency while establishing America as the premier crypto hub worldwide.
Mandatory License Framework for Stablecoin Companies
After the GENIUS Act becomes operational, organizations seeking to issue payment stablecoins within the United States will be required to secure either federal or state-level licensing. Unlicensed operations will be prohibited.
International stablecoin issuers also encounter limitations. Digital asset platforms will be barred from providing or distributing foreign payment stablecoins to American consumers unless the overseas issuer demonstrates compliance with US legal directives and relevant reciprocal agreements.
Beginning July 18, 2028, service providers will generally be prohibited from making any payment stablecoins available to US individuals unless those digital tokens originate from licensed issuers.
The Treasury’s proposed framework seeks to establish clear parameters for determining when a stablecoin qualifies as being “issued” within US jurisdiction. The rules also specify criteria for when an issuer or platform is deemed to be distributing or marketing a stablecoin to American consumers.
This proposal follows an earlier advance notice of proposed rulemaking that Treasury published in September of the previous year.
Regulatory Timeline Concerns as Deadline Passes
Treasury wasn’t alone in developing GENIUS Act implementation guidelines. The Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Federal Reserve Board each released their own regulatory proposals throughout 2026.
Nevertheless, all agencies apparently failed to meet the 120-day July deadline for completing regulations ahead of the January 2027 effective date. This situation creates potential uncertainty, as the legislation could become enforceable without comprehensive finalized guidance available.
During July, the UK-US Financial Regulatory Working Group convened in London for discussions on bilateral cooperation, with GENIUS Act implementation among the topics addressed. Certain cryptocurrency industry observers have expressed concerns that the United Kingdom is lagging behind the United States in stablecoin regulatory development.
The feedback window extends 60 days from Federal Register publication. Treasury has indicated it encourages submissions from industry representatives and additional interested parties as it crafts the definitive regulatory structure.
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