US Treasury moves forward with rules on GENIUS Act after July deadline
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The US Department of the Treasury has issued a notice of proposed rulemaking for the implementation of the GENIUS Act, a law establishing a framework for payment stablecoins. The proposed rules are open for public comment ahead of the Act’s scheduled effective date on January 18, 2027. Treasury Secretary Scott Bessent invited stakeholder input as the department works to provide regulatory clarity.
Why it matters
The source highlights that the GENIUS Act will require entities issuing payment stablecoins in the US to obtain federal or state licenses. This regulatory framework aims to bring certainty to businesses in the stablecoin market, potentially shaping innovation and growth in the sector. The Act’s full effect depends on finalized regulations, which are currently being developed.
Key context
The GENIUS Act was signed into law last year and is set to go into effect 18 months later, with a 120-day window for agencies to finalize related rules. However, US agencies, including the Treasury, Federal Reserve, FDIC, and OCC, missed the 120-day deadline in July 2025 to finalize regulations. This delay risks the Act coming into force without clear guidance. Related discussions between UK and US regulators have taken place regarding cooperation on stablecoin regulation.
Key numbers and entities
The US Department of the Treasury, Treasury Secretary Scott Bessent, Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board, and UK-US Financial Regulatory Working Group are key entities mentioned. The stablecoin law’s effective date is January 18, 2027. Public comment on the proposed rules is open for 60 days after publication.
What remains unclear
The source notes that rules were not finalized by the 120-day deadline, leaving uncertainty on the exact regulatory details that will govern payment stablecoins once the GENIUS Act takes effect. It remains unclear how final rules will shape the compliance landscape for issuers, and what specific licensing requirements will be enforced.