Odaily Planet Daily reports: On August 17, the U.S. Department of the Treasury issued a Notice of Proposed Rulemaking (NPRM) outlining proposed regulations for the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), seeking public comment to advance the implementation of the U.S. regulatory framework for payment stablecoins.
U.S. Treasury Secretary Scott Bessent stated that the Trump administration and Congress are advancing the GENIUS Act to establish a “landmark regulatory framework and clear rules” for payment stablecoins, and the Treasury is accelerating the implementation of related regulations. He said the Treasury aims to support businesses in innovating and growing in the U.S. by providing regulatory certainty, while reinforcing the dollar’s position as the global reserve currency and positioning the U.S. as the global hub for crypto assets.
Under the GENIUS Act, effective January 18, 2027, any entity seeking to issue a payment stablecoin in the United States must generally obtain the appropriate federal or state license. Additionally, digital asset service providers are generally prohibited from offering, selling, or distributing payment stablecoins issued abroad in the U.S. market unless the foreign issuer has the technical capability to comply with U.S. regulatory requirements and can adhere to relevant arrangements between the United States and its jurisdiction of origin.
Starting July 18, 2028, the bill further requires that digital asset service providers generally may not offer or sell payment stablecoins to “persons in the United States,” unless the relevant stablecoin is issued by a licensed issuer.
The draft rules issued by the Department of the Treasury primarily provide regulatory guidance on two key issues: first, clarifying what constitutes “issuing a payment stablecoin in the United States” to help issuers determine when they must apply for a GENIUS Act license; and second, defining what constitutes “offering or selling a payment stablecoin to persons in the United States” to provide compliance guidance for businesses participating in the U.S. stablecoin market.
The U.S. Department of the Treasury stated that this public comment period will last 60 days after publication in the Federal Register, during which the public and industry participants may submit comments.