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Treasury proposes federal rules for GENIUS Act stablecoin issuance
The proposal opens a 60-day public comment period, after Congress’s prior one-year implementation deadline lapsed last month.
The U.S. Department of the Treasury has proposed federal definitions tied to the Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS Act, as part of the effort to set up rules for U.S. stablecoin issuers, CoinDesk reports. The administration, including banking and markets regulators, is moving forward despite the GENIUS Act’s one-year deadline passing last month.
According to CoinDesk, Treasury Secretary Scott Bessent said the goal is to move quickly to provide regulatory certainty for businesses, support innovation and growth in the U.S., and reinforce the U.S. dollar’s role globally, as reflected in a statement. Treasury’s action follows an advance notice of rulemaking issued in September.
The proposed rule would also clarify who must follow the GENIUS Act requirements, while the department and other agencies work toward implementing the law’s requirements. The public and stablecoin issuers have 60 days to submit comments, and Treasury is expected to spend additional months reviewing them before issuing a final rule, the outlet said.
Under the GENIUS Act, as described by The Block, entities generally cannot issue payment stablecoins in the U.S. without obtaining an appropriate federal or state license. The proposal raises dozens of questions about how to interpret the law, with stablecoin issuers likely focusing on how the rules address foreign issuers, including Tether.