The US Treasury Department has issued draft rules to begin implementing the GENIUS Act, the new US law focused on payment stablecoins, and opened a 60-day public comment period on the proposal.

The draft is meant to clarify when issuing, offering, or selling a payment stablecoin falls within US rules. It also sets out how the law would apply to tokens issued outside the country but circulating in the US market, ahead of key compliance deadlines in 2027 and 2028.

What the draft rules cover

Treasury said the proposal is intended to define the scope of the GENIUS Act in practical terms. A central question is what counts as issuing a payment stablecoin in the United States and, in turn, when an issuer must hold either a federal or state license.

The draft also addresses when a payment stablecoin is considered to be offered or sold to a person in the US. That point is significant because the law is not limited only to domestic issuers and is also aimed at market activity involving stablecoins that may have been created elsewhere but are available to US users.

Licensing timeline begins in 2027

Under the GENIUS Act, businesses that want to issue payment stablecoins in the US must obtain the appropriate license starting on January 18, 2027. The draft rules are intended to explain which activities trigger that requirement and how firms should determine whether they fall within the law.

By spelling out the definitions in advance, Treasury is effectively laying the groundwork for how issuers and other market participants will be expected to prepare before the licensing regime takes effect.

Foreign-issued stablecoins face added limits

The proposal also makes clear that the US framework would reach certain stablecoins issued abroad. Treasury said digital asset service providers would be restricted from offering, selling, or distributing those stablecoins in the US unless the foreign issuer is able to comply with US requirements and operate under cross-border cooperation arrangements.

That means overseas issuance alone would not place a token outside the law if it is circulating in the US market. The draft instead focuses on whether the stablecoin is being made available to people in the country and whether the issuer can meet the standards set by the US regime.

Stricter distribution rules arrive in 2028

The framework is set to tighten further on July 18, 2028. From that point, providers would in principle be allowed to offer or sell to US users only those stablecoins that are issued by authorized issuers.

This marks a shift from the earlier phase of implementation, which centers on licensing and compliance, to a more restrictive distribution standard tied directly to issuer authorization. The draft rules are intended to show how that transition would work in practice.

Treasury seeks feedback before finalizing the regime

Treasury has opened the proposal for public comment for 60 days, giving industry participants and other stakeholders a window to respond before the rules are finalized.

Treasury Secretary Scott Bessent said the GENIUS Act is designed to provide regulatory certainty, support US innovation, and reinforce the dollar’s role as the world’s reserve currency. For now, the confirmed next step is the comment process, after which Treasury can refine the implementing rules before the law’s 2027 licensing deadline begins.

Source: en.bloomingbit.io