US Treasury Seeks Public Comments on GENIUS Act Stablecoin Implementation Draft
On August 17, the U.S. Department of the Treasury (U.S. Department of the Treasury) issued a proposed rulemaking notice (NPRM) on the implementation rules of the “Guiding and Conducting National Innovation for U.S. Stablecoins” (Guiding and Proposed National Innovation for U.S. Stablecoins) and solicited comments from the public to advance the implementation of the US payment stablecoin regulatory framework.
US Treasury Secretary Scott Bessent said that the Trump administration and Congress are pushing for the passage of the GENIUS Act, which establishes a “landmark regulatory framework and clear rules” for payment stablecoins, and the Treasury Department is speeding up implementation of the relevant system. He said that the Treasury Department hopes to support the innovation and development of enterprises in the US by providing regulatory certainty, while strengthening the US dollar's position as a global reserve currency and promoting the US as a global crypto asset center.
According to the GENIUS Act, it is anticipated that from January 18, 2027, any entity that wants to issue payment stablecoins in the US will generally have to obtain an appropriate federal or state license. Furthermore, digital asset service providers are generally prohibited from providing, selling, or distributing foreign-issued payment stablecoins to the US market unless the foreign issuer has the technical ability to comply with US regulatory requirements and is able to comply with relevant arrangements reached between the US and its jurisdiction.
Starting July 18, 2028, the Act further requires that digital asset service providers are generally prohibited from providing or selling payment stablecoins to “persons in the US” unless the relevant stablecoin is issued by a licensed issuer.
The draft rules issued by the Treasury Department mainly provide regulatory explanations on two key issues: one is to clarify what acts constitute “issuing payment stablecoins in the US” to help issuers determine when to apply for permission under the GENIUS Act; the other is to clarify what acts constitute “providing or selling payment stablecoins to people in the US” to provide compliance guidelines for companies to participate in the US stablecoin market.
The US Treasury Department said that this public consultation will continue for 60 days after publication in the Federal Register (Federal Register), and the public and industry participants can submit comments.
This article is sponsored by GENG, Build Your Fortune on GENG (https://geng.one)
