US Treasury Opens GENIUS Act Stablecoin Regulations to Public Comment Ahead of January Implementation

Treasury Department Advances Stablecoin Regulatory Framework

The US Department of the Treasury has taken a major step forward in implementing the stablecoin legislation by opening its proposed rules for public feedback. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which was signed into law in 2025, is moving steadily toward an implementation date of January 18, 2027. Treasury officials underscored their commitment to building clear regulatory guidance, with Treasury Secretary Scott Bessent noting that the department welcomes stakeholder input as it works to establish the regulatory certainty needed for businesses to innovate and grow in the American market.

Missed Deadlines and the Path Forward

The GENIUS Act’s implementation timeline was originally designed to occur either 120 days after all necessary federal rules were finalized or 18 months after the law’s passage in July 2025, whichever came first. Despite this framework, multiple federal agencies responsible for the rulemaking—including the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board—did not complete their rule-finalization process by the July 2026 deadline. This regulatory gap means the stablecoin framework could take effect in January without comprehensive finalized guidance already in place. To address this, the Treasury Department has now opened a 60-day public comment period, giving industry participants, researchers, and other stakeholders an opportunity to shape how the regulatory structure will function in practice.

Licensing Requirements and Global Regulatory Alignment

Under the GENIUS Act framework, any entity wishing to issue payment stablecoins in the United States will be required to obtain either a federal or state license. The legislation establishes a comprehensive regulatory structure designed to balance fostering technological innovation with maintaining financial stability. Meanwhile, regulatory coordination is expanding internationally. The UK-US Financial Regulatory Working Group met to discuss how both nations would approach stablecoin oversight, with some industry participants viewing rapid US regulatory progress as potentially positioning the country ahead of other jurisdictions establishing their own stablecoin rules. Clear stablecoin regulation creates stability for the broader digital asset ecosystem, including complementary assets like XRP that operate in the same market environment.

Source: US Department of the Treasury, via Cointelegraph. Not financial advice.