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Treasury proposes rules that would restrict US access to offshore payment stablecoins
Under the proposed GENIUS Act rules, payment stablecoins could still operate across chains, but US exchanges and other regulated providers would face staged distribution limits starting Jan. 18, 2027.
The US Treasury Department has proposed rules under the GENIUS Act that would restrict how offshore payment stablecoins can be offered to customers in the United States, even if the tokens themselves continue circulating and working on-chain abroad, CryptoSlate reports.
Under the proposal, a digital asset service provider would not be able to offer or sell a payment stablecoin to someone in the US from July 18, 2028 unless the issuer fits permitted categories. Treasury also expects a broader regime to take effect in stages, beginning Jan. 18, 2027, giving issuers and platforms more time to prepare.
Treasury is focused on controlling regulated businesses distribution inside the US. That category would include exchanges, custodians, and other firms that transfer digital assets or provide services connected to issuance, and it also uses a broad “offer or sell” definition that can include advertising, agreeing to sell, completing trades after a customer contacts a platform, and even helping customers get around geolocation controls.
For major stablecoins such as Tether’s USDT, the practical issue is whether American exchanges can keep listing and selling the token to customers if its issuer does not satisfy the permitted categories when the 2028 stage begins, according to CryptoSlate.