GENIUS Act Stablecoin Licensing Rules Explained by Treasury

TLDR

• Treasury issued a Notice of Proposed Rulemaking on August 17, 2026, to enforce Section 3 of the GENIUS Act.
• The proposal opens a 60-day public comment period for banks, exchanges, and stablecoin issuers.
• Stablecoin issuers must hold one dollar in reserves for every dollar in tokens issued, under the 2025 law.
• U.S. stablecoin licensing becomes mandatory starting January 18, 2027.
• U.S. platforms can only offer stablecoins from licensed issuers starting July 18, 2028.

The U.S. Department of the Treasury issued a Notice of Proposed Rulemaking on August 17, 2026. The rule lays out how the agency plans to enforce Section 3 of the GENIUS Act.

That federal law governs who can legally issue a payment stablecoin in the United States. The new filing adds detail on top of a law that already passed.

Treasury Secretary Scott Bessent framed the move as part of a broader effort to give issuers clear rules. He said the goal is to position the U.S. dollar as the anchor for global stablecoin activity.

The proposal opens a formal 60-day comment window. Exchanges, banks, and stablecoin issuers now have a direct chance to weigh in before the rules become mandatory.

What the Proposed Rule Covers

Congress passed the GENIUS Act in July 2025. The law already requires stablecoin issuers to hold one dollar of reserves for every dollar in tokens outstanding.

Treasury’s new filing builds on that framework with enforcement detail. It defines when a company crosses the line into needing a GENIUS license in the first place.

It also defines what counts as offering or selling a stablecoin to someone in the U.S. That distinction matters most for tokens issued outside the country.

Beginning January 18, 2027, anyone issuing a payment stablecoin domestically will need a federal or state license. Bessent said Treasury is moving quickly through the rulemaking process to meet that timeline.

By July 18, 2028, U.S. platforms will only be allowed to offer stablecoins from licensed issuers. That gives the industry roughly two years to prepare.

What This Means for Stablecoin Holders

If you hold or use dollar-pegged stablecoins today, this proposal does not change anything right now. Nothing about your current holdings is affected by this filing.

This process will decide which issuers can keep operating in the U.S. once the 2027 and 2028 deadlines hit. The coins your exchange or wallet supports could look different depending on whether their issuers qualify.

Builders, smaller issuers, and anyone else with a stake in the outcome can submit formal comments before the window closes. Treasury has not set an exact closing date beyond the standard 60 days from Federal Register publication.

That means the final rule could still shift based on industry feedback. This proposal builds on an advance notice Treasury issued last September, so the agency already gathered one round of input before drafting this version.

The next concrete marker is January 18, 2027, when the licensing requirement takes effect. Every stablecoin issuer serving U.S. customers now has to plan around that date.

The stablecoins in your wallet today are not at risk from this filing. What changes over the next several months is which issuers stay licensed to keep operating in the United States.

The post GENIUS Act Stablecoin Licensing Rules Explained by Treasury appeared first on Blockonomi.