U.S. regulators missed the July 18 deadline for implementing the GENIUS Act on stablecoins, only releasing draft proposals and opening comment periods.
U.S. regulatory bodies missed the July 18 deadline for finalizing rules under the GENIUS Act, which was established one year after the law's enactment. This act mandates that various financial regulators, including the Office of the Comptroller of the Currency (OCC), the Federal Reserve (Fed), the Federal Deposit Insurance Corporation (FDIC), and the National Credit Union Administration (NCUA), alongside the Treasury Secretary, create implementation guidelines.
As of the deadline, the agencies only released draft documents and initiated comment periods, failing to publish any final regulations.
Ongoing Developments
Earlier this year, the OCC issued a detailed proposal in the Federal Register outlining the implementation of the GENIUS Act, which includes requirements related to reserve assets, capital, liquidity, and risk management for stablecoin issuers. The FDIC followed in April with a proposal focusing on prudential standards that involve reserves, capital, and risk management, as well as deposit insurance for stablecoin reserves.
The NCUA also contributed potential licensing rules in February and a broader document on operational management in May, with the comment period for this second package closing just before the July deadline.
Additionally, the Treasury Department's state-level regulatory principles are still pending, which aim to clarify when a state regulatory framework can be considered "substantially similar" to the federal one. A joint proposal from the Fed, FinCEN, OCC, FDIC, and NCUA released at the end of June requires issuers to verify the sources of funds and maintain proper documentation, with comments accepted until August 21.
Another FDIC document regarding compliance standards related to the Bank Secrecy Act is still open for review.
Future Outlook
The bureaucratic nature of U.S. agencies suggests that many of the proposed regulations may not be finalized by the end of the year. Agencies are also tasked with reviewing extensive industry feedback before completing the rules. While the missed deadline does not postpone the effective date of the GENIUS Act, lawmakers are simultaneously working on the CLARITY Act, which will take effect either on January 18, 2027, or 120 days after final rules are issued by federal regulators.
Importantly, Congress did not impose penalties or set alternative deadlines should agencies fail to finalize the rules. In June, various banking associations urged the Senate to clarify aspects of the CLARITY Act concerning stablecoin yields.
