Treasury Defines Scope of New US Stablecoin Law
The U.S. Treasury has issued proposed rules to implement the GENIUS Act, defining when stablecoin issuers must obtain a federal license and how foreign-issued stablecoins can be offered in the U.S.
The U.S. Department of the Treasury has issued a Notice of Proposed Rulemaking (NPRM) to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The proposed rules focus on clarifying critical jurisdictional terms, such as what constitutes “issuing a payment stablecoin in the United States” and what it means to “offer or sell” one to a person in the U.S.
These definitions are fundamental to the new regulatory framework. They will determine which stablecoin issuers must obtain a U.S. license and under what conditions digital asset service providers can offer foreign-issued stablecoins in the American market. The GENIUS Act, enacted in July 2025, creates a comprehensive licensing regime for payment stablecoins, and this NPRM is a key step in its operationalization. It will affect all participants in the digital asset ecosystem, from issuers and exchanges to investors and traditional financial institutions exploring the space.
Treasury is inviting public comment on the proposed rules for 60 days following publication. Counsel for affected entities should review the proposal to assess its impact on current and future operations and consider submitting comments before the deadline.