The US Department of the Treasury is seeking public opinion on its proposed framework for implementing key provisions of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which establishes a regulatory framework for stablecoins.
Treasury proposes rules for stablecoin issuance
The proposed rules would clarify when a company is considered to be issuing a stablecoin in the US and when digital asset service providers are considered to be offering or selling stablecoins to US users.
Under the GENIUS Act, only permitted issuers will generally be allowed to offer stablecoins to US customers. Beginning on the expected effective date of January 18, 2027, issuers will need to obtain an appropriate federal or state license to operate.
The legislation also restricts foreign-issued stablecoins. Treasury noted that foreign issuers who satisfy the criteria under Section 18 of the GENIUS Act may be permitted to issue payment stablecoins in the US, subject to applicable requirements. This includes registration with the Office of the Comptroller of the Currency (OCC).
Treasury Secretary Scott Bessent said the proposed rules are intended to provide businesses with greater regulatory certainty while supporting innovation and the role of the US dollar in global markets.
“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 US dollar as the world’s reserve currency, and keep America the crypto capital of the world,” Bessent said.
Proposal sets rules for stablecoin offers and sales
Treasury’s proposal also seeks to clarify what activities would constitute offering or selling payment stablecoins to people in the US. Examples include directly soliciting US customers and advertising a stablecoin as available to US buyers. It also covers responding affirmatively to an unsolicited inquiry from a US customer and entering into a sale contract with a person in the country.
The proposal also mentions attempts to circumvent US restrictions. A digital asset service provider could be considered to have offered or sold a stablecoin in the US if it advises potential buyers on how to bypass location-detection mechanisms designed to block US purchases.
Treasury is also seeking input on whether airdrops of payment stablecoins should qualify as offers, even when recipients do not provide consideration.
The proposal includes exemptions for certain transactions, including direct transfers between individuals acting on their own behalf, transfers between a person’s US and foreign accounts held with the same parent company, and transactions conducted through software or hardware wallets used for self-custody.
Participation in an unlawful issuance may attract a fine of up to $1 million per violation, imprisonment for up to five years, or both.
Public comments are to be submitted within 60 days of the NPRM’s release in the Federal Register.
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