The US Treasury Department has begun the formal rulemaking process for part of the GENIUS Act, opening a 60-day public comment period on proposed rules tied to the stablecoin law’s implementation. The step focuses on Section 3 of the statute and is intended to shape how key parts of the framework will work in practice.

The proposal comes ahead of the law’s full rollout and centers on practical definitions that will affect issuers and digital asset service providers. Treasury is seeking feedback before finalizing standards that determine when a payment stablecoin falls within US issuance rules and when it is considered offered or sold to a US person.

Section 3 moves into rulemaking

Treasury said it has issued a notice of proposed rulemaking for Section 3 of the GENIUS Act. Once the proposal is published in the Federal Register, the agency will accept public comments for 60 days.

That consultation period is meant to gather input from industry participants and other stakeholders before Treasury writes the final rules. The department is using the process to develop the detailed requirements needed for the law’s broader implementation.

What the proposed rules are meant to define

A central part of the proposal is clarifying when a stablecoin is considered to be issued in the United States. Treasury also plans to set standards for deciding when an issuer or a digital asset service provider has offered or sold a stablecoin to a US person.

Those definitions matter because the GENIUS Act establishes compliance obligations based on where a payment stablecoin is issued and whether it is being made available to US users. The rulemaking is designed to resolve those threshold questions before the law is fully in force.

Licensing and limits on access

Under the law, companies issuing payment stablecoins in the United States will generally need a license from federal or state authorities after the act takes effect. The framework is also expected to cover foreign-issued stablecoins, indicating that overseas issuance does not place an asset outside the law’s reach.

The timeline includes a later restriction for market access. Starting July 18, 2028, digital asset service providers generally will not be allowed to offer or sell payment stablecoins to US users unless the tokens are issued by an authorized issuer.

Treasury’s stated goals and next step

Treasury Secretary Scott Bessent said the department wants stakeholder feedback as it develops the rules. He described the effort as part of a push to provide regulatory certainty, support innovation, and reinforce the US dollar’s role as the world’s reserve currency.

For now, the immediate next step is publication of the proposal in the Federal Register, which starts the 60-day clock for comments. After that period closes, Treasury will review submissions and continue the process of turning the GENIUS Act’s statutory language into enforceable rules.

Source: en.bloomingbit.io