Treasury Drafts Rules for Stablecoin Sales

Treasury Proposes Rules for Stablecoin Issuance Under GENIUS Act

The U.S. Department of the Treasury unveiled proposed regulations Monday that will define which stablecoins can be issued or sold within the United States, as mandated by the GENIUS Act.

The proposal, which implements Section 3 of the GENIUS Act signed into law last summer, stipulates that beginning January 18, 2027, stablecoin issuers will generally be required to secure a federal or state license. Platforms will also be permitted to offer foreign-issued stablecoins, provided the foreign issuer adheres to U.S. legal orders and any agreements in place between the U.S. and their country of regulation.

“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 stated on X.

Starting July 18, 2028, more comprehensive restrictions are set to take effect, generally prohibiting crypto exchanges and other digital asset platforms from selling stablecoins to U.S. customers, “unless the payment stablecoin is issued by a permitted payment stablecoin issuer.”

Secretary Bessent indicated that the regulations aim to provide businesses with regulatory certainty while simultaneously reinforcing the prominence of the U.S. dollar. He also extended an invitation for public feedback.

“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,” Bessent wrote.

Potential violations of these proposed rules could encompass directly soliciting U.S. buyers, advertising a stablecoin as accessible to them, agreeing to a sale following an unsolicited inquiry, or assisting buyers in circumventing location restrictions such as IP checks.

Public comments on the proposal are due by October 19, 2026, which is 60 days following its publication in the Federal Register.

This announcement comes as federal agencies continue to draft the implementing rules for the GENIUS Act, legislation signed into law by President Donald Trump in July 2025 to establish a federal framework for stablecoins in the U.S.

Earlier this year, the Office of the Comptroller of the Currency proposed rules governing the issuance and oversight of stablecoins in February. In April, the FDIC followed with proposed requirements concerning reserves, redemptions, capital, and risk management. That same month, the Treasury put forth proposed anti-money laundering and sanctions rules, mandating that issuers report suspicious activities and maintain the capacity to block or freeze transactions.

These proposed compliance measures have encountered opposition from the cryptocurrency industry. In June, Paradigm and the Hyperliquid Policy Center cautioned that holding issuers responsible for stablecoins after they enter secondary markets could lead them to withdraw from decentralized finance.