Treasury Opens Its First GENIUS Act Rule as Stablecoin Deadlines Near

Treasury proposes its first major GENIUS Act rule

The U.S. Department of the Treasury proposed a rule on 17 August 2026 that sets federal definitions for issuing payment stablecoins. The notice of proposed rulemaking, or NPRM, implements Section 3 of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. Treasury Secretary Scott Bessent announced the action on Monday. It is the first major move to put the stablecoin law into practice.

Proposed rule defines when stablecoins count as U.S. activity

The proposal explains when a payment stablecoin is issued, offered, or sold in the United States. That boundary decides when a company must hold a federal or state license. It also sets when digital asset service providers make a stablecoin available to people in the country. Treasury said it studied established securities laws as a reference point. The department added that traditional investment rules may not fit stablecoins built for payment and settlement.

"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 welcomes input from stakeholders as we work to provide the regulatory certainty businesses need to innovate and grow in America, cement the role of the U.S. dollar as the world's reserve currency and keep America the crypto capital of the world.", 17 August 2026. — Scott Bessent, Secretary of the Treasury, U.S. Department of the Treasury

Public comment period runs 60 days before a final rule

The public and the stablecoin industry have 60 days to file comments once the notice appears in the Federal Register. Treasury will then review the responses over several months before it issues a final rule. The proposal builds on an advance notice the department issued in September 2025. The law's one-year target for rules passed last month without a final framework in place.

GENIUS Act licensing deadlines arrive in 2027 and 2028

The law is expected to take effect on 18 January 2027. From that date, a person generally may not issue a payment stablecoin in the country without an appropriate federal or state license. A second deadline on 18 July 2028 bars digital asset service providers from offering unlicensed stablecoins to U.S. users. Knowing violations carry fines up to $1 million and prison terms up to five years.

Foreign issuers like Tether face new access rules

The proposal drew industry attention to how the rules will treat foreign issuers. Tether is the largest stablecoin issuer, with a market value near $183 billion (CoinPaprika, 18 August 2026). Under the law, service providers may offer a foreign-issued stablecoin only if the issuer can comply with lawful orders and reciprocal arrangements between countries. Treasury poses dozens of questions about the right approach before it finalizes the rule.

Congress could still rewrite parts of the law

A separate effort may reshape the framework. According to CoinDesk, the Digital Asset Market Clarity Act would rewrite parts of the GENIUS Act, including its treatment of stablecoin reward programs on exchanges. That bill stalled in the Senate this month before the August recess. Treasury's proposal moves ahead while the wider market-structure debate continues.

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