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The U.S. Treasury Department has proposed rules defining when payment stablecoins can legally be issued, offered or sold in the United States under the GENIUS Act. The proposal would set licensing requirements for U.S. issuers, foreign issuers and crypto platforms serving American customers.
Treasury’s proposal would generally require appropriately licensed issuers beginning January 18, 2027. The department is accepting public comments through October 19.
Proposal Limits U.S. Stablecoin Issuance to Approved Issuers
Under the proposal, payment stablecoins could generally be issued in the U.S. by permitted payment stablecoin issuers or qualifying foreign issuers. Treasury defines issuance as the first transfer by an issuer that gives another person the right to use, transfer or redeem the stablecoin.
The rules would also cover intermediaries involved in distributing newly created stablecoins. Treasury identifies activities such as soliciting customers, distributing newly issued tokens and making them available for secondary-market trading as potentially connected to unlawful issuance. Treasury Secretary Scott Bessent said the department is moving quickly to implement that framework.
Crypto Platforms Face Restrictions From July 2028
Beginning July 18, 2028, digital asset service providers generally could not offer or sell stablecoins to U.S. customers unless the tokens come from a permitted issuer or qualifying foreign issuer. The rules would apply to businesses including exchanges, custodians and certain digital asset transfer services.
Treasury says offering or selling could include advertising stablecoins to U.S. customers, directly soliciting purchases or agreeing to sell tokens to people in the country. Platforms would also be prohibited from helping customers bypass location restrictions.
Foreign Stablecoins Face Additional Requirements
Foreign issuers would face additional conditions for U.S. market access, including compliance with lawful U.S. orders and applicable regulatory arrangements. Qualifying foreign issuers would need to meet Treasury’s U.S. registration requirements and operate under a foreign regulatory regime that Treasury considers comparable.
The proposal includes exemptions for certain person-to-person and self-custody wallet transactions. Treasury will review public comments before issuing final GENIUS Act regulations.
