The US Treasury has moved closer to implementing landmark stablecoin legislation, proposing new rules that spell out when issuers and digital asset platforms will fall under the GENIUS Act.
Treasury released the proposed regulations on August 17, 2026, opening a 60-day public consultation on rules governing the issuance, offering and sale of payment stablecoins in the US.
Stablecoin licensing rules take shape
Under the GENIUS Act, from January 18, 2027, businesses will generally be prohibited from issuing payment stablecoins in the US unless they hold an appropriate federal or state licence.
Treasury’s proposal aims to clarify what constitutes issuing a stablecoin “in the United States” and when digital asset service providers are considered to be offering or selling stablecoins to US customers.
Further restrictions are scheduled from July 18, 2028, when platforms will generally be unable to offer payment stablecoins to US users unless the tokens come from qualifying issuers under the new regulatory framework.
Why it matters for crypto
The regulations could have significant implications for stablecoin issuers and exchanges seeking access to the world's largest financial market.
The GENIUS Act requires payment stablecoins to be backed by relatively safe, liquid assets, including bank deposits and short-term US Treasury securities. Federal Reserve officials have said the framework could provide greater regulatory certainty while highlighting risks involving reserve quality, financial stability and illicit finance.
Washington builds out crypto framework
The latest proposal forms part of a broader regulatory rollout.
Treasury, FinCEN and other US financial regulators have already proposed rules covering anti-money laundering, sanctions compliance and customer identification requirements for stablecoin issuers.
The next 60 days will give crypto companies, financial institutions and other stakeholders an opportunity to influence how the rules operate before the GENIUS Act takes effect.