TLDR
- The US Treasury has issued a Notice of Proposed Rulemaking on the GENIUS Act stablecoin law
- The GENIUS Act is set to take effect on January 18, 2027
- Entities will need a federal or state license to issue payment stablecoins in the US
- The OCC, FDIC, and Federal Reserve also issued proposed rules but all missed the July deadline to finalize them
- Public comment is open for 60 days after publication in the Federal Register
The US Treasury Department has begun seeking public comment on how it plans to implement the GENIUS Act, the stablecoin legislation signed into law by President Trump in July 2025.
JUST IN: 🇺🇸 Treasury Secretary Scott Bessent says the "Treasury is moving quickly to implement" the GENIUS Act 👀
"Beginning on January 18, 2027, the expected effective date of the GENIUS Act," 👀 pic.twitter.com/VCxbnwNM5G
— Bitcoin Magazine (@BitcoinMagazine) August 17, 2026
The Treasury issued a Notice of Proposed Rulemaking on Monday. It covers Section 3 of the Guiding and Establishing National Innovation for US Stablecoins Act and is now open to public feedback.
The law is scheduled to take effect on January 18, 2027. That date is set either 120 days after agencies finalize rules, or 18 months after the bill was signed, whichever comes first.
Treasury Secretary Scott Bessent said the department wants to provide “regulatory certainty businesses need to innovate and grow in America.” He also said the goal is to keep the US dollar as the world’s reserve currency and position America as the crypto capital of the world.
Licensing Requirements for Stablecoin Issuers
Once the GENIUS Act takes effect, any entity that wants to issue a payment stablecoin in the US will generally need to hold a federal or state license. Operating without one will not be permitted.
Foreign-issued stablecoins face restrictions too. Digital asset service providers will not be allowed to offer or sell foreign payment stablecoins to US users unless the foreign issuer can comply with US legal orders and applicable reciprocal arrangements.
Starting July 18, 2028, providers generally cannot offer any payment stablecoins to US persons unless those tokens are issued by a licensed issuer.
Treasury’s proposed rules also aim to clarify when a stablecoin is considered to be “issued” in the US. They also define when an issuer or service provider is considered to be offering or selling a stablecoin to a US person.
This notice builds on an advance notice of proposed rulemaking that Treasury issued last September.
Agencies Missed Key Deadline
The Treasury was not the only agency working on GENIUS Act rules. The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board all issued their own proposed rules in 2026.
However, all agencies reportedly missed the 120-day deadline in July to finalize regulations before the January 2027 start date. That raises the possibility that the law could take effect without fully finalized guidance in place.
In July, the UK-US Financial Regulatory Working Group met in London to discuss cooperation between the two countries, including GENIUS Act implementation. Some in the crypto industry have said the UK is falling behind the US on stablecoin regulation.
The public comment period runs for 60 days after the proposal is published in the Federal Register. Treasury said it welcomes input from industry participants and other stakeholders as it develops the final framework.
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