US Treasury Moves to Define Rules for Stablecoin Issuance and Sales

US Treasury Moves to Define Rules for Stablecoin Issuance and Sales

August 18, 2026
By Mintesinot Nigussie

The US Treasury Department has proposed rules to implement key provisions of the GENIUS Act, setting out when stablecoin issuers must obtain a US licence and when digital asset service providers can offer foreign-issued payment stablecoins in the US.

The Notice of Proposed Rulemaking, or NPRM, seeks public comment on Treasury’s proposed framework for implementing Section 3 of the Guiding and Establishing National Innovation for US Stablecoins Act.

The GENIUS Act is scheduled to take effect on January 18, 2027. From that date, a person generally will not be permitted to issue a payment stablecoin in the US without an appropriate federal or state licence.

The proposed rules would also establish criteria for determining when a payment stablecoin is considered to have been issued in the US, providing guidance to issuers on when they would be required to obtain a licence under the new framework.

The legislation also places conditions on foreign-issued payment stablecoins. Digital asset service providers generally will not be able to offer, sell or otherwise make available such stablecoins unless the foreign issuer has the technological capability to comply with lawful US orders and meets the requirements of any reciprocal arrangement between the US and the issuer’s home jurisdiction.

From July 18, 2028, digital asset service providers will generally be prohibited from offering or selling payment stablecoins to people in the US unless the stablecoins are issued by a licensed issuer.

“President Trump and Congress delivered the GENIUS Act, establishing a landmark framework and clear rules of the road for payment stablecoins, and Treasury is moving quickly to implement that framework,” Treasury Secretary Scott Bessent said.

The proposed framework is intended to clarify how the new licensing and market-access requirements will apply to stablecoin issuers and digital asset service providers operating in US markets.

Treasury is inviting comments from industry participants and other stakeholders before finalising the rules. The proposal follows an advance notice of proposed rulemaking issued by the department in September on the implementation of the GENIUS Act.

Source: FSX Business News