The proposal is a key step in implementing the GENIUS Act. It seeks to clarify when stablecoin issuers need a federal or state license and when crypto platforms are considered to be making st
The proposal is a key step in implementing the GENIUS Act. It seeks to clarify when stablecoin issuers need a federal or state license and when crypto platforms are considered to be making stablecoins available in the U.S.
Treasury’s notice opens a public-comment period lasting 60 days from its publication in the Federal Register. Treasury Secretary Scott Bessent described the GENIUS Act as “a landmark framework and clear rules of the road for payment stablecoins” and said the department is moving quickly to implement it.
According to Bessent, the goal is to give businesses the regulatory certainty needed to “innovate and grow in America,” while strengthening the global role of the U.S. dollar.
The proposed rule focuses on two legal definitions: what it means to issue a payment stablecoin in the United States and to offer or sell one to a person in the country.
These definitions will determine which companies must comply with the GENIUS Act’s licensing requirements. Beginning January 18, 2027, companies generally will not be allowed to issue payment stablecoins in the U.S. without the appropriate federal or state license. Treasury is now seeking to establish when an issuer crosses that threshold.
The question also affects exchanges and other digital-asset service providers. A platform may operate from abroad but still be considered to offer stablecoins to U.S. customers.
The GENIUS Act introduces an earlier condition for payment stablecoins issued outside the United States. From January 18, 2027, digital-asset service providers generally will not be allowed to make a foreign-issued payment stablecoin available unless its issuer can comply with lawful U.S. orders and a reciprocal arrangement exists between the United States and the issuer’s home jurisdiction.
A broader restriction takes effect on July 18, 2028. After that date, platforms generally may offer payment stablecoins to U.S. customers only if the assets are issued by a licensed entity. The deadline could determine whether major foreign-issued stablecoins remain available, with USDT among the assets facing questions over future U.S. market access. The impact on overseas companies will depend largely on how Treasury determines whether they are serving the U.S. market.
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Fed July Minutes: What Crypto Investors Are Expecting This WeekThe notice does not introduce new reserve requirements, approve individual issuers or direct exchanges to remove specific stablecoins.
Its focus is jurisdiction: when an issuer is operating in the United States and when a platform is serving a U.S. customer. This will be particularly important for companies whose headquarters, issuing entity and users are spread across multiple jurisdictions.
Treasury is seeking feedback from stablecoin issuers, exchanges, banks, technology providers and the public. Comments will be published on Regulations.gov.
The consultation is expected to examine practical questions such as how platforms determine a user’s location, how stablecoins are distributed and how foreign issuers can comply with U.S. orders.
This is not the final rule. The responses received during the 60-day consultation will help determine which issuers and products can serve U.S. customers once the GENIUS Act’s restrictions take effect.
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