- The US Treasury Department opened a proposed rulemaking for the GENIUS Act, which will create a federal framework for payment stablecoins.
- The stablecoin law’s effective date is set for January 18, 2027, but agencies missed the July deadline to finalize regulations.
- Once effective, entities generally cannot issue a payment stablecoin in the US without a federal or state license.
The US Department of the Treasury issued a notice of proposed rulemaking on Monday to implement the GENIUS Act, a bill establishing a framework for payment stablecoins that was signed into law last year. The department is opening the proposed rule up to public comment ahead of the January 2027 effective date.
Treasury Secretary Scott Bessent said the department “welcomes input from stakeholders as [it works] to provide the regulatory certainty businesses need to innovate and grow in America.” Together with the Treasury, agencies including the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Federal Reserve Board have also issued proposed rules in 2026.
However, all departments reportedly missed the 120-day deadline in July to finalize regulations before January. This signals that the GENIUS Act could go into effect without clear guidance. According to the Treasury, once the act is in effect, an entity generally may not issue a payment stablecoin without a related federal or state license. Public comment on the department’s proposed rules is open for 60 days following publication in the Federal Register.
Meanwhile, the UK-US Financial Regulatory Working Group met in London in July to discuss cooperation on implementing the GENIUS Act. Although UK authorities have taken steps to address stablecoin regulation, some crypto industry insiders argue the country is falling behind the US.
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