The Treasury Department issued a
Section 3 of the Guiding and Establishing National Innovation for US Stablecoins Act discusses the fundamental architecture of the payment stablecoin market in the United States, prescribing who may issue, offer, sell or otherwise make available payment stablecoins. Section 3 "is intended to have extraterritorial effect if conduct involves the offer or sale of a payment stablecoin to a person located in the United States." It makes it unlawful for anybody other than a permitted payment stablecoin issuer to issue a payment stablecoin in the United States, with fines of up to $1 million and up to five years in prison for violations.
Starting Jan. 18, 2027, the expected effective date of the GENIUS Act, a person generally may not "issue a payment stablecoin in the United States" unless the person has obtained an appropriate federal or state license. Digital asset service providers generally can't offer, sell or otherwise make available foreign-issued payment stablecoins unless the foreign issuer has the technological capability to comply with, and will comply with, the terms of any lawful order and any reciprocal arrangement between the U.S. and the issuer's home jurisdiction.
Starting July 18, 2028, the GENIUS Act also says that digital asset service providers generally may not offer or sell any payment stablecoins to persons "in the United States" unless the payment stablecoins are issued by a licensed issuer.
This notice outlines the Treasury's proposed framework for implementing these requirements. By defining what it means to "issue a payment stablecoin in the United States," the proposed rule would provide clarity to industry regarding when an issuer needs to obtain a GENIUS license. By defining what it means to "offer or sell" a payment stablecoin to a person "in the United States," the proposed regulation would provide clarity to industry regarding when and how payment stablecoins can be offered or sold in U.S. markets.
The Treasury is asking for the public to offer comments for it to consider as it develops the rules governing stablecoins, building upon an advance notice of proposed rulemaking that the Treasury issued
"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," said Treasury Secretary Scott Bessent in a statement Monday. "Treasury welcomes input from stakeholders as we work to provide the regulatory certainty businesses need to innovate and grow in America, cement the role of the U.S. dollar as the world's reserve currency, and keep America the crypto capital of the world."
Members of the public should submit comments in response to the notice within 60 days of publication in the Federal Register. Comments responding to the notice will be publicly viewable at
