US Treasury Starts 60-Day Comment Period on GENIUS Act Rules

The US Treasury Department is starting a public comment process to draft detailed rules ahead of the full implementation of the GENIUS Act, the stablecoin regulation law.

The Treasury has released a notice of proposed rulemaking for Section 3 of the GENIUS Act and will collect feedback from industry participants and other stakeholders, according to The Block on Aug. 17.

The GENIUS Act is the first federal stablecoin law in the US. President Donald Trump signed it in July 2025, and it is scheduled to take effect on Jan. 18, 2027.

After the law takes effect, any company seeking to issue a payment stablecoin in the US will generally need the appropriate license from either federal or state authorities.

The rules will also cover stablecoins issued overseas. Digital asset service providers will face restrictions on offering or selling those stablecoins to US users if the foreign issuer cannot comply with US legal orders and reciprocity requirements.

The Treasury said the rulemaking will clarify when a stablecoin is considered to have been issued in the US. It will also define the standards for determining when an issuer or digital asset service provider has offered or sold a stablecoin to a US person.

Beginning July 18, 2028, digital asset service providers generally will not be allowed to offer or sell payment stablecoins to US users unless the tokens were issued by an authorized issuer.

Treasury Secretary Scott Bessent said the department welcomes feedback from stakeholders to provide the regulatory certainty companies need to innovate and grow in the US. The effort will also help strengthen the dollar's status as the world's reserve currency and make the US a global hub for digital assets, he added.

The comment period will run for 60 days from the date the proposed rule is published in the Federal Register.