WASHINGTON — The Treasury Department is moving to implement the GENIUS Act’s stablecoin licensing requirements, proposing rules that would generally prohibit companies from issuing payment stablecoins in the United States without an appropriate federal or state license beginning Jan. 18, 2027.
Treasury issued a notice of proposed rulemaking Monday addressing Section 3 of the Guiding and Establishing National Innovation for U.S. Stablecoins Act, according to the department and reporting by Accounting Today and The Block. The proposal seeks to clarify when stablecoins are considered issued in the United States and when they are being offered or sold to U.S. customers.
The GENIUS Act, signed into law by President Donald Trump in July 2025, established the first comprehensive federal regulatory framework specifically for payment stablecoins, digital assets generally designed to maintain a stable value relative to an asset such as the U.S. dollar.
Under the law, beginning Jan. 18, 2027, a person generally may not issue a payment stablecoin in the United States unless the issuer has obtained an appropriate federal or state license, Treasury said.
What is the ‘United States?’
The proposed rule is intended to establish what constitutes issuing a stablecoin “in the United States,” a determination that will affect which companies are required to obtain licenses.
Accounting Today reported that Section 3 is intended to apply beyond U.S. borders when activity involves offering or selling a payment stablecoin to someone located in the United States. Violations of the restrictions on unauthorized issuance could carry penalties of up to $1 million and as much as five years in prison.
The proposal also addresses foreign-issued stablecoins.
Digital asset service providers generally would be prohibited from offering, selling or otherwise making foreign-issued payment stablecoins available unless the foreign issuer has the technological ability to comply with lawful U.S. orders and agrees to comply with applicable reciprocal arrangements between the United States and the issuer’s home jurisdiction, according to Treasury.
A broader restriction is scheduled to take effect July 18, 2028. Beginning then, digital asset service providers generally would be prohibited from offering or selling payment stablecoins to people in the United States unless the stablecoins were issued by a licensed issuer.
Treasury said defining what it means to “offer or sell” a stablecoin to someone in the United States is intended to give cryptocurrency exchanges, wallet providers, custodians and other digital asset businesses greater clarity about when U.S. restrictions apply.
Input Being Sought
“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 said in a statement.
Bessent said Treasury is seeking input from stakeholders as it works to provide regulatory certainty for businesses while supporting innovation and strengthening the role of the U.S. dollar as the world’s reserve currency.
The proposal represents another step in a regulatory process Treasury began in September 2025, when it issued an advance notice of proposed rulemaking seeking public input on implementation of the GENIUS Act.
Treasury said comments on the latest proposal must be submitted within 60 days after publication in the Federal Register and will be publicly available.
