Key Highlights
- Treasury Department has published a Notice of Proposed Rulemaking regarding GENIUS Act stablecoin regulations
- Compliance deadline is set for January 18, 2027
- Stablecoin issuers must obtain federal or state licensing to operate payment stablecoins in the United States
- Federal regulators including OCC, FDIC, and Federal Reserve published their own proposals but did not meet July finalization deadline
- Stakeholders have 60 days following Federal Register publication to submit feedback
The United States Treasury Department has launched a public consultation process regarding its implementation strategy for the GENIUS Act, the landmark stablecoin legislation that President Trump enacted in July 2025.
On Monday, Treasury released a Notice of Proposed Rulemaking addressing Section 3 of the Guiding and Establishing National Innovation for US Stablecoins Act, opening the door for public input on the proposed framework.
Implementation is scheduled for January 18, 2027. This timeline follows either the completion of finalized regulations plus 120 days, or 18 months from the legislation’s signing dateāwhichever arrives sooner.
According to Treasury Secretary Scott Bessent, the department aims to deliver “regulatory certainty businesses need to innovate and grow in America.” Bessent emphasized the dual objectives of maintaining the US dollar’s status as the global reserve currency while establishing America’s leadership position in the cryptocurrency sector.
What Stablecoin Issuers Must Know About Licensing
When the GENIUS Act becomes effective, organizations seeking to issue payment stablecoins within United States borders will be required to secure either federal or state-level authorization. Companies lacking proper licensing will be prohibited from conducting these operations.
International stablecoin providers also encounter limitations under the framework. Digital asset service platforms will be barred from distributing or marketing foreign payment stablecoins to American consumers unless the overseas issuer demonstrates compliance with US legal mandates and relevant reciprocal agreements.
By July 18, 2028, service providers will face a general prohibition against offering any payment stablecoins to US persons unless those digital tokens originate from licensed issuers.
The Treasury’s proposed regulatory framework seeks to establish clear definitions for when a stablecoin qualifies as being “issued” within US jurisdiction. Additionally, the rules outline criteria determining whether an issuer or service provider is engaging in offering or selling activities directed at US persons.
This announcement follows up on preliminary guidance that Treasury released through an advance notice of proposed rulemaking published last September.
Regulatory Agencies Fall Behind Schedule
Treasury wasn’t working in isolation on GENIUS Act implementation. The Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Federal Reserve Board each published separate proposed regulatory frameworks throughout 2026.
Despite these efforts, reports indicate that all regulatory bodies failed to meet the mandatory 120-day July deadline for finalizing rules ahead of the January 2027 effective date. This shortfall creates uncertainty that the legislation may become enforceable without complete regulatory guidance in place.
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. Cryptocurrency industry observers have noted concerns that the United Kingdom may be lagging behind American progress on stablecoin regulatory frameworks.
The public feedback window remains open for 60 days following official publication in the Federal Register. Treasury has indicated its receptiveness to contributions from industry stakeholders and interested parties as it refines the final regulatory structure.
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