- Treasury proposed definitions for issuing U.S. stablecoins under the new law.
- The proposal opens a 60-day comment period with replies due in mid-October.
- The law missed its one-year rulemaking target and still takes effect on January 18.
The U.S. Treasury Department has proposed new stablecoin rules as it works to implement the GENIUS Act before the law’s next major deadline. The proposal sets out federal definitions for what it means to issue U.S. stablecoins and which parties would need to follow the law. Treasury is one of several agencies responsible for building the full framework, alongside banking and markets regulators. The move also opens a 60-day public comment period, giving issuers and other market participants time to respond before a final rule is drafted. That process now unfolds under time pressure after the law’s one-year target for implementing rules passed last month.
Treasury outlines stablecoin rules
Treasury said the proposal is meant to clarify how the law should work in practice. The draft focuses on the meaning of issuing U.S. stablecoins and on who falls within the law’s requirements. Those definitions are a basic part of the stablecoin rules because they determine which businesses would be subject to federal obligations as the legal framework takes shape.
Treasury Secretary Scott Bessent said the administration is trying to move quickly. In a statement, he said the goal is to provide businesses with regulatory certainty so they can innovate and grow in the United States, while also reinforcing the role of the U.S. dollar and supporting the country’s position in crypto markets.
How stablecoin rules may differ from securities law
Treasury said it treated stablecoins as a new area, though it looked to existing securities laws as a reference point. According to the proposal, those long-standing legal regimes have addressed the issue, offer, and sale of other financial instruments, including securities and some offshore activity. That comparison gives Treasury a starting framework for interpreting the new law.
At the same time, the department said the GENIUS Act shows a clear intent for payment stablecoins to function as a means of payment and settlement, including across borders. Treasury added that applying traditional investment rules to payment stablecoins could frustrate that purpose. That suggests the stablecoin rules may not simply mirror older financial regulations, especially where payment use is central.
Stablecoin rules enter a 60 day comment period
Monday’s proposal follows an advance notice of the rule issued in September last year. With this new step, the public and the stablecoin industry now have 60 days to submit comments. Treasury said the proposal raises dozens of questions about how the law should be interpreted, showing that important details remain unsettled before a final version can be completed.
The response deadline falls in mid-October, after which Treasury is expected to spend further months reviewing comments. That timeline matters because the law’s one-year target for implementing rules passed last month without being met. The next major date is January 18, when the law is supposed to take effect, even though it appears unlikely that all stablecoin rules will be finalized by then.
Foreign issuers and Congress add regulatory pressure
One issue likely to receive close attention is how Treasury handles foreign issuers. The proposal signals that overseas activity matters because payment stablecoins are expected to be used across borders. That makes the treatment of foreign companies, including market leader Tether, a significant issue in the final design of the stablecoin rules.
The rulemaking effort is also taking place while Congress considers the Digital Asset Market Clarity Act, which could rewrite parts of the GENIUS Act. CoinDesk noted that the most prominent issue is how rewards programs for stablecoin customers on exchanges are treated. Still, that legislation is on uncertain ground after failing to begin key votes earlier this month before the Senate left for its August recess.
Conclusion
Treasury’s latest proposal shows that stablecoin rules are advancing, but under a compressed schedule. The department is trying to define core terms around U.S. stablecoin issuance, gather public input and decide how broadly the law should apply, including to foreign issuers. At the same time, officials are working past a missed one-year rulemaking target while facing a January 18 effective date for the law. That means the final stablecoin rules may not be fully completed before the law takes effect. The process is further complicated by separate legislation in Congress that could still change parts of the underlying framework.
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