U.S. financial regulators have missed the GENIUS Act’s one-year deadline to complete core rules for the country’s federal stablecoin regime, leaving several of the law’s most important operating standards unresolved.

Although the deadline passed on July 18, the law’s implementation date has not automatically moved. The federal framework is still scheduled to take effect by January 18, 2027, unless final rules trigger an earlier start.

Unfinished core requirements

Several of the largest rule packages are still pending across multiple agencies. The Office of the Comptroller of the Currency published its main proposed GENIUS Act rules in February. Those proposals address reserve assets, redemptions, capital, liquidity, custody and risk management for stablecoin issuers overseen by the OCC.

The Federal Deposit Insurance Corporation followed with its own proposal in April for issuers connected to FDIC-supervised banks. Its draft framework also covers reserves, capital, redemptions, custody and risk controls, but it has not been finalized.

The National Credit Union Administration has likewise been developing standards for stablecoin issuers. Its latest proposal was still in consultation as the statutory deadline arrived.

Customer checks and AML still in progress

Another major gap involves customer identification requirements. Regulators have not yet completed rules that would require stablecoin issuers to verify customers and keep records. Under the joint proposal, permitted stablecoin issuers would be treated as financial institutions for purposes of Bank Secrecy Act obligations.

That proposal’s public comment period runs beyond the July 18 deadline, pushing normal review and finalization further out. Separate anti-money laundering and sanctions-related rules are also still being developed, including proposals from the Treasury Department and an additional FDIC proposal.

State-federal balance not yet settled

The law also leaves room for some smaller stablecoin issuers to operate under state supervision, provided state-level rules satisfy federal standards. But the process for making that determination remains unfinished.

In April, the Treasury Department proposed a certification framework for state oversight. That proposal has not yet been finalized. At the same time, a bipartisan group of senators has called for clearer timelines and for state regulators to retain a defined role in the system.

Compressed timeline for issuers

The missed deadline does not itself stop the GENIUS Act from taking effect on schedule. Still, the delay narrows the period between publication of final rules and the framework’s planned launch.

That leaves prospective issuers preparing for a federal regime while several detailed obligations could still change. Areas still in flux include reserve management, redemption procedures, customer verification, custody arrangements and broader compliance systems.

With the statutory deadline now passed, regulators are still working through key requirements that will shape how stablecoin issuers operate under the new framework and how much time they will have to adapt before the January 2027 start date.

Source: crypto.news