The US Department of the Treasury has issued a Notice of Proposed Rulemaking, seeking public comment on the implementation of Section 3 of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The proposed framework aims to establish regulatory standards governing the issuance, offering, and sale of payment stablecoins within the United States.
Treasury Secretary Scott Bessent stated that the rule aims to deliver regulatory certainty for digital asset businesses while reinforcing the role of the US dollar in global digital markets. The publishing of the NPRM follows an Advance Notice of Proposed Rulemaking issued in September 2025, marking a formal move toward establishing federal supervisory standards for stablecoin issuers.
Key Compliance Deadlines and Licensing Framework
The GENIUS Act introduces a phased timeline for regulatory enforcement across US digital asset markets. Beginning January 18, 2027, the expected effective date of the legislation, entities will generally be prohibited from issuing payment stablecoins in the United States without obtaining an appropriate federal or state license.
A secondary enforcement phase begins on July 18, 2028, after which digital asset service providers will generally be barred from offering or selling any payment stablecoins to persons in the United States unless the tokens are issued by a licensed entity. The NPRM establishes legal definitions for what constitutes issuing, offering, or selling stablecoins to provide compliance clarity for market operators.
Rules Governing Foreign-Issued Payment Stablecoins
The proposed regulation sets explicit conditions for foreign stablecoin issuers seeking access to US capital markets. Under the proposed rules, domestic digital asset service providers may not offer, sell, or make available foreign-issued payment stablecoins unless the foreign entity demonstrates technical and legal compliance capabilities.
Specifically, foreign issuers must maintain the technological capacity to comply with lawful US orders and satisfy reciprocal regulatory arrangements established between the United States and the issuer’s home jurisdiction. This requirement ensures that off-shore stablecoin operators align with US oversight standards before accessing domestic liquidity.
Public Comment Period and Implementation Timeline
The publication opens a 60-day public comment period starting from the date the NPRM appears in the Federal Register. Treasury is soliciting feedback from industry participants, financial institutions, consumer advocates, and international regulators to refine the final regulatory text ahead of the 2027 statutory deadline.
Stakeholders will focus their comments on the operational definitions of geographic scope, custody controls, and cross-border enforcement mechanics. The feedback gathered during this window will inform Treasury’s final rule, shaping how stablecoin issuers, custodians, and exchanges operate within the US financial system over the coming decade.
Disclaimer: CoinScreamer is an independent media brand owned and operated by NuvexMedia LLC, publishing news, research, and market insights on digital assets and related technologies. NuvexMedia LLC invests in and collaborates with companies across the digital asset, blockchain, and technology sectors. These relationships do not influence CoinScreamer’s editorial coverage, and the publication maintains full editorial independence to provide accurate, timely, and objective information. © 2025 NuvexMedia LLC. All rights reserved. This content is for informational purposes only and should not be considered legal, tax, investment, financial, or other professional advice.
