Treasury Draws The Lines On Who Can Issue Stablecoins In U.S.
By CU Today Staff —
WASHINGTON—The Treasury Department is moving to put the GENIUS Act’s stablecoin licensing regime into practice, proposing rules that would generally bar companies from issuing payment stablecoins in the United States without a federal or state license beginning Jan. 18, 2027.
Treasury said the proposal is intended to define when a stablecoin is considered “issued” in the United States and when it is being offered or sold to a U.S. customer. The proposed rule implements Section 3 of the GENIUS Act, which governs the issuance, offer and sale of payment stablecoins.
Beginning July 18, 2028, digital asset service providers generally would be prohibited from offering or selling payment stablecoins to U.S. customers unless the coins were issued by a permitted issuer, according to Treasury. The proposal also addresses foreign issuers, allowing U.S. distribution only under specified conditions, including an issuer’s ability to comply with lawful orders and applicable reciprocal arrangements. The underlying proposal says Section 3 is intended to reach conduct outside the United States when it involves offering or selling a stablecoin to someone located in the country.
Among the key questions Treasury seeks to settle is precisely when a stablecoin becomes “issued.” The department proposes treating issuance as the first transfer by an issuer that gives another person the right to use, transfer or redeem the token; simply minting a token and keeping it in the issuer’s treasury generally would not count. Treasury also proposes treating stablecoin issuers as digital asset service providers when they conduct covered activities for compensation or profit, meaning the two regulatory categories can overlap. CoinDesk reported the definitions are among the most significant remaining pieces of the government’s effort to operationalize the GENIUS Act, particularly for foreign issuers and companies trying to determine when U.S. rules attach to their activities.
Treasury Secretary Scott Bessent said the department is seeking stakeholder input as it works to provide regulatory certainty for companies operating in the market. The proposal follows an advance notice Treasury issued in September 2025 and is scheduled for publication in the Federal Register Tuesday, Aug. 18. Comments will be accepted for 60 days after publication. CoinDesk noted regulators are already past the GENIUS Act’s one-year target for completing implementing rules, putting additional pressure on agencies as the law’s expected Jan. 18, 2027 effective date approaches.
Originally reported by CU Today.