US Treasury Advances Stablecoin Regulation Under GENIUS Act

The US Department of the Treasury has issued a notice of proposed rulemaking concerning the implementation of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. This legislation, signed into law last year, aims to establish a regulatory framework for payment stablecoins. The Treasury Department is now soliciting public comment on the proposed rule, which precedes the GENIUS Act's scheduled implementation in January 2027.

Treasury Secretary Scott Bessent indicated that the department is seeking input from stakeholders to provide regulatory clarity for businesses operating within the United States. Other US government agencies, including the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve Board, have also issued proposed rules in 2026 related to GENIUS implementation.

However, these departments reportedly did not meet the 120-day deadline in July to finalize regulations, suggesting that the GENIUS Act could take effect without comprehensive guidance. Upon its implementation, the GENIUS Act will generally require entities issuing payment stablecoins in the US to possess a federal or state license. The public comment period for the Treasury Department's proposed rules will remain open for 60 days following their publication in the Federal Register.

In July, the UK-US Financial Regulatory Working Group convened in London to discuss financial agency cooperation, which included discussions on GENIUS Act implementation. While UK authorities have addressed stablecoin regulation, some crypto industry observers suggest the UK is lagging behind the US due to the impending implementation of GENIUS.