The proposed rulemaking targets Section 3 of the Guiding and Establishing National Innovation for U.S. Stablecoins Act, the statute that created a federal framework for dollar-backed digital tokens. Treasury is asking stakeholders to weigh in within 60 days of the notice’s publication in the Federal Register, with comments to be posted publicly on regulations.gov.
What the Proposed Rule Defines
The NPRM sets out Treasury’s approach to two threshold questions that the statute left to regulators. First, it defines what it means to “issue a payment stablecoin in the United States,” the trigger that determines when an issuer must obtain a federal or state GENIUS license. Second, it defines what it means to “offer or sell” a payment stablecoin to a person “in the United States,” the trigger that governs when tokens can reach U.S. customers.
Both definitions carry compliance deadlines already written into the statute. Starting January 18, 2027 — the expected effective date of the GENIUS Act — a person generally may not issue a payment stablecoin in the United States without an appropriate federal or state license. Beginning July 18, 2028, digital asset service providers generally may not offer or sell any payment stablecoin to persons in the United States unless the coins are issued by a licensed issuer.
Foreign-Issued Stablecoins Under the Framework
The proposed rule also addresses foreign-issued payment stablecoins, a significant concern for exchanges and token issuers operating across borders. Under the framework, digital asset service providers generally may not offer, sell, or otherwise make available foreign-issued payment stablecoins unless the foreign issuer has the technological capability to comply with — and will in fact comply with — any lawful order and any reciprocal arrangement between the United States and the issuer’s home jurisdiction.
That provision effectively imports a technical and legal compliance standard into the cross-border market. Foreign issuers seeking U.S. distribution will need to demonstrate both the capability to respond to American legal process and a willingness to honor reciprocal arrangements, narrowing the universe of tokens that platforms can list for U.S. users without a licensed domestic issuer behind them.
Bessent Frames Rule as Dollar-Reserve Play
Treasury Secretary Scott Bessent cast the rulemaking as part of a broader effort to entrench the dollar’s global role and draw crypto business to the United States. “President Trump and Congress delivered the GENIUS Act, establishing a landmark framework and clear rules of the road for payment stablecoins, and Treasury is moving quickly to implement that framework,” Bessent said in the announcement. “Treasury welcomes input from stakeholders as we work to provide the regulatory certainty businesses need to innovate and grow in America, cement the role of the U.S. dollar as the world’s reserve currency, and keep America the crypto capital of the world.”
The language signals that Treasury views stablecoin regulation not only as a consumer-protection and financial-stability exercise but as an instrument of dollar policy. Payment stablecoins, which are typically pegged to the dollar and backed by dollar reserves, have grown into a meaningful channel for dollar demand abroad. A clear U.S. licensing regime could deepen that demand while giving regulators visibility into the reserves and operations behind the tokens.
From Advance Notice to Proposed Rule
Today’s NPRM builds on an Advance Notice of Proposed Rulemaking that Treasury issued in September 2025, which asked the public a broad set of questions about how the GENIUS Act should be implemented. The shift from an advance notice to a proposed rule means Treasury has now moved from gathering open-ended input to putting specific regulatory text on the table for comment — a step that typically precedes a final rule by several months.
The 60-day comment window is standard for major financial rulemakings and gives industry participants, consumer groups, foreign regulators, and legal scholars time to challenge definitions, request carve-outs, or flag unintended consequences before Treasury finalizes the text. Because the statute’s effective dates are fixed — January 2027 for issuance and July 2028 for market access — Treasury is working against a statutory clock rather than an open-ended timeline.
What Happens Next
Stakeholders should watch three things once the NPRM appears in the Federal Register. First, the comment letters themselves: exchanges, stablecoin issuers, banks, and foreign regulators are likely to press hardest on the definition of “in the United States,” since that phrase determines who needs a license and who can be blocked from the market. Second, Treasury’s response in the eventual final rule — particularly any narrowing or broadening of the foreign-issuer compliance standard, which could determine whether major offshore stablecoins survive in U.S. distribution. Third, coordination with state regulators, since the GENIUS Act allows issuance under either federal or state licenses, raising questions about how dual authority will work in practice. With the January 2027 licensing deadline roughly four months after the comment window closes, Treasury will have limited time to digest input and issue a final rule before the statutory clock starts running.
— Sofia Alvarez, government desk, AXO News