Key Highlights
- The Treasury has proposed regulations that outline the conditions under which stablecoins can be issued, offered, or sold in the U.S. as per the GENIUS Act.
- Starting January 18, 2027, issuers will generally need to secure a federal or state license to issue payment stablecoins within the U.S.
- From July 18, 2028, crypto exchanges will be restricted from selling stablecoins to U.S. customers unless they originate from an approved issuer.
On Monday, the U.S. Department of the Treasury revealed proposed regulations that clarify which stablecoins can be legally issued or sold in the United States under the GENIUS Act.
This proposal is part of the implementation of Section 3 of the GENIUS Act, which was signed into law last summer. Under these new rules, stablecoin issuers will generally be required to obtain a federal or state license starting January 18, 2027. Platforms will also be allowed to sell stablecoins issued abroad, provided the foreign issuers adhere to U.S. legal stipulations and agreements with their respective countries.
Myriad: Will the Clarity Act be signed into law in 2026? Click to predict.Treasury Secretary Scott Bessent stated on X, "President Trump and Congress have delivered the GENIUS Act, creating a pivotal framework and clear guidelines for payment stablecoins, and the Treasury is swiftly moving to apply this framework."
Beginning July 18, 2028, more stringent rules will typically bar crypto exchanges and other digital asset platforms from selling stablecoins to U.S. customers, unless the stablecoin is issued by a designated payment stablecoin issuer.
Bessent emphasized that these regulations are aimed at providing businesses with regulatory clarity while reinforcing "the U.S. dollar’s position," and he encouraged public feedback.
In his remarks, Bessent noted, "Treasury is eager to hear from stakeholders as we strive to deliver the regulatory certainty that businesses require to innovate and expand in the U.S., solidifying the U.S. dollar's status as the global reserve currency, and maintaining America's leadership in the crypto space."
Violations of these proposed rules could involve directly targeting U.S. customers, advertising stablecoins as available to them, agreeing to sales following unsolicited inquiries, or assisting customers in circumventing geographical restrictions like IP checks.
Public comments regarding this proposal must be submitted by October 19, 2026, which is 60 days after its publication in the Federal Register.
This announcement arrives as federal agencies continue to draft regulations to enforce the GENIUS Act, which President Donald Trump enacted in July 2025 to lay down a federal framework for stablecoins in the U.S.
In February, the Office of the Comptroller of the Currency suggested regulations for the issuance and oversight of stablecoins. Subsequently, the FDIC proposed in April requirements concerning reserves, redemptions, capital, and risk management. Additionally, the Treasury proposed anti-money laundering and sanctions rules that would require issuers to report suspicious activities and maintain the capability to block or freeze transactions.
These compliance proposals have met resistance from the crypto sector. In June, Paradigm and the Hyperliquid Policy Center cautioned that making issuers accountable for stablecoins once they enter secondary markets could deter them from participating in decentralized finance.