Public input sought on licensing framework set to take effect in January 2027
The U.S. Department of the Treasury is soliciting public comment on proposed implementing rules for the GENIUS Act, the landmark stablecoin legislation signed into law by President Donald Trump in 2025. The comment period, announced on August 17, 2026, marks the formal regulatory process ahead of the law’s January 18, 2027 effective date.
Treasury Secretary Scott Bessent said in a statement: “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.”
The GENIUS Act allows banks and other entities to issue stablecoins if they back tokens with assets like U.S. Treasuries and provide monthly disclosures of reserves. Starting January 18, 2027, a person generally may not issue a payment stablecoin in the United States unless the person has obtained an appropriate federal or state license. A stricter prohibition on offers and sales of stablecoins takes effect on July 18, 2028.
The Treasury consultation includes questions on whether key terms are defined clearly enough, when a stablecoin should be considered “issued,” and what due diligence obligations digital asset service providers should have when relying on foreign issuers’ compliance representations.
Bessent added: “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.”
The rulemaking process follows Congress’s passage of the GENIUS Act, which established the foundational stablecoin framework that Treasury is now translating into specific licensing and operational requirements. The implementing rules will govern how issuers apply for licenses, maintain reserve backing, and disclose holdings to regulators.
Separately, lawmakers were aiming in August 2026 to vote on the Clarity Act, a crypto market structure bill, but the vote was delayed until September.
