Treasury proposes GENIUS Act rules for payment-stablecoin issuance and U.S. distribution

What changed

Treasury proposed regulations implementing section 3 of the GENIUS Act. The proposal would interpret the prohibition on U.S. payment-stablecoin issuance by persons other than permitted issuers and address when exchanges, custodians, transfer services, and other digital-asset service providers may offer or make stablecoins available in the United States. It also addresses foreign-issued stablecoins, technological compliance with lawful orders, territorial scope, evasion, and related definitions. Comments are due October 19, 2026; the proposal is not effective law.

Who it affects

• Payment-stablecoin issuers and applicants for permitted-issuer status
• Digital-asset exchanges, custodians, transfer services, and other covered service providers
• Banks, advisers, funds, and clients relying on U.S. or foreign payment stablecoins

What is still open

• The definitions, territorial tests, exceptions, transition provisions, and compliance dates Treasury will adopt
• How service providers will verify issuer status and foreign issuers' technological compliance capabilities
• How the final rule will interact with regulator-specific GENIUS Act rules, reciprocal arrangements, sanctions, AML, and state regimes

What it means for an advisor

• Inventory stablecoins used in client, custody, collateral, payment, and treasury-management workflows and identify each issuer's expected regulatory pathway
• Assess whether exchanges, custodians, and other providers can restrict unsupported stablecoins and document issuer-status checks
• Do not treat the proposal as currently effective or assume that a foreign stablecoin will remain available in the United States

Previous interpretation

Treasury's September 2025 ANPRM sought broad GENIUS Act implementation input without proposed regulatory text for section 3's issuance, offer, and sale restrictions.