The Treasury Department has launched a public consultation process regarding its implementation strategy for the GENIUS Act, the stablecoin regulatory framework that President Trump enacted in July 2025.
JUST IN:
Treasury Secretary Scott Bessent says the "Treasury is moving quickly to implement" the GENIUS Act
"Beginning on January 18, 2027, the expected effective date of the GENIUS Act,"
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— Bitcoin Magazine (@BitcoinMagazine) August 17, 2026
On Monday, Treasury published a Notice of Proposed Rulemaking addressing Section 3 of the Guiding and Establishing National Innovation for US Stablecoins Act, inviting stakeholder input on the proposed framework.
The legislation is slated to become operational on January 18, 2027. This effective date will arrive either 120 days following the completion of final agency rulemaking, or 18 months from the law’s enactment date—whichever milestone occurs earlier.
Treasury Secretary Scott Bessent emphasized the department’s commitment to delivering “regulatory certainty businesses need to innovate and grow in America.” He further stated the initiative aims to preserve the US dollar’s status as the global reserve currency while establishing the United States as the leading hub for cryptocurrency innovation.
When the GENIUS Act becomes operational, organizations seeking to issue payment stablecoins within US jurisdiction must obtain either federal or state-level authorization. Unlicensed operations will be prohibited.
Stablecoins issued by foreign entities also face regulatory constraints. Digital asset platforms will be barred from facilitating or distributing foreign payment stablecoins to American customers unless the overseas issuer demonstrates compliance with US legal mandates and maintains appropriate reciprocal agreements.
Beginning July 18, 2028, service providers will generally be prohibited from offering any payment stablecoins to US residents unless those digital assets originate from properly licensed issuers.
The Treasury’s proposed framework seeks to establish clear definitions for determining when a stablecoin qualifies as being “issued” within United States territory. The rules also delineate the circumstances under which an issuer or platform is deemed to be distributing or marketing a stablecoin to American consumers.
This regulatory proposal follows an advance notice of proposed rulemaking that Treasury released in September of the previous year.
Treasury wasn’t the sole agency tasked with developing GENIUS Act regulatory frameworks. The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board each published their respective proposed regulations during 2026.
Nevertheless, reports indicate that every agency failed to meet the 120-day July deadline for completing final regulations ahead of the January 2027 implementation date. This creates potential complications where the legislation could become active without comprehensive finalized guidance available.
During July meetings, the UK-US Financial Regulatory Working Group convened in London to address cross-border regulatory cooperation, including coordination on GENIUS Act deployment. Certain cryptocurrency industry observers have expressed concerns that the United Kingdom is lagging behind the United States in developing stablecoin regulatory frameworks.
The public feedback window extends for 60 days following the proposal’s appearance in the Federal Register. Treasury officials have indicated they encourage submissions from industry representatives and additional stakeholders while formulating the conclusive regulatory structure.
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