US Treasury Proposes Rules for GENIUS Act Stablecoin Regulation

The U.S. Treasury Department has proposed new rules to implement the GENIUS Act, a landmark stablecoin law signed in July 2025, outlining how the legislation will define and regulate payment stablecoins within the United States. The proposal, released on August 17, 2026, establishes the framework for determining when stablecoin activity falls under U.S. jurisdiction, setting the stage for licensing requirements that take effect in January 2027.

The GENIUS Act, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, was signed into law by President Donald Trump on July 18, 2025. The law mandates that, beginning January 18, 2027, entities generally cannot issue payment stablecoins in the United States without a federal or state license. The Treasury's latest Notice of Proposed Rulemaking focuses on Section 3 of the act, seeking to define precisely when a stablecoin is considered issued, offered, or sold in the U.S.

Treasury Secretary Scott Bessent stated that the department is moving to implement the framework while seeking feedback from companies and other stakeholders. Bessent said the rules are intended to provide businesses with regulatory...