US Treasury Releases Draft GENIUS Act Rules, Opens 60-Day Comment Period

The US Treasury Department released draft rules to implement the GENIUS Act, a law governing payment stablecoins, and opened a public comment period.

Crypto outlet Odaily reported on Aug. 17 that the Treasury had published a notice of proposed rulemaking for the law's implementing regulations. The comment period will remain open for 60 days after the proposal is published in the Federal Register.

The draft is focused on more clearly defining the scope of the GENIUS Act. It specifies what constitutes issuing a payment stablecoin in the US, clarifying when an issuer must obtain a federal or state license.

It also defines what constitutes offering or selling a payment stablecoin to a person in the US. The step is intended to clarify how the rules apply when stablecoins issued overseas circulate in the US market.

Under the GENIUS Act, businesses seeking to issue payment stablecoins in the US must, in principle, obtain an appropriate federal or state license starting Jan. 18, 2027.

The rules also apply to stablecoins issued abroad. Digital asset service providers will be restricted from offering, selling or distributing those stablecoins in the US market unless the foreign issuer has the technical capacity to comply with US regulations and can operate under relevant cross-border cooperation arrangements.

The regime will tighten further starting July 18, 2028. From that date, digital asset service providers will, in principle, only be permitted to offer or sell to US users stablecoins issued by authorized issuers.

Treasury Secretary Scott Bessent said the Trump administration and Congress had established a landmark regulatory framework and clear rules for payment stablecoins through the GENIUS Act. He added that the measure would provide regulatory certainty, support companies innovating in the US and strengthen the dollar's status as the world's reserve currency.