The U.S. Treasury Department on Aug. 17 released draft implementation rules for the GENIUS Act and opened a public comment process, putting the focus on when a payment stablecoin is treated as issued in the United States and when a company is considered to be offering or selling stablecoins to U.S. users.
Industry participants will have 60 days to submit comments. The move marks the latest step in Treasury’s effort to put the U.S. stablecoin framework into operation.
Treasury moves ahead with payment stablecoin rulemaking
The GENIUS Act was signed into law by U.S. President Donald Trump in July 2025. It is described as the first law in the United States to establish a full federal regulatory structure for payment stablecoins.
Treasury Secretary Scott Bessent said the administration and Congress have established a regulatory framework and clear rules for payment stablecoins through the GENIUS Act. He said Treasury will accelerate implementation of the regime, with the goal of giving businesses regulatory certainty while supporting the development of the U.S. digital asset industry, reinforcing the dollar’s status as the global reserve currency, and strengthening the United States as the global capital of cryptocurrency.
Draft sets an expected effective date and restrictions
According to the draft released by Treasury, the GENIUS Act is expected to take effect on Jan. 18, 2027. From that date, any issuer that does not have approval from U.S. federal or state authorities would be fully barred from issuing payment stablecoins within the United States.
The proposal also places added limits on digital asset service providers that deal with foreign-issued payment stablecoins. Unless the issuer commits to complying with U.S. law and reciprocity arrangements, those firms would not be allowed to provide or sell stablecoins to U.S. users.
Comment period follows an earlier preview version
Treasury said the latest draft is meant to clarify two issues: when a stablecoin is considered to be "issued in the United States," and under what circumstances an issuing entity or service provider is viewed as providing or selling payment stablecoins to U.S. residents.
The draft builds on a preview version Treasury released in September last year. The department said it welcomes input from industry participants and other stakeholders, and written comments may be submitted within 60 days after the proposal is published in the Federal Register.