The US Department of the Treasury has launched a public consultation on the implementation of the GENIUS Act, a significant piece of crypto legislation designed to give clear guidance for the issuance and regulation of stablecoins. The measure, signed into law by President Donald Trump in 2025, mandates that banks and other approved entities can only issue stablecoins if they are fully backed by assets such as US Treasury securities and provide transparent, monthly updates on reserves.
GENIUS Act sets timeline for stablecoin regulation
The GENIUS Act, passed by Congress last year, requires US government agencies to develop concrete rules for stablecoin issues before enforcement begins. According to Treasury officials, the law’s main provisions are scheduled to take effect on January 18, 2027. From that date, individuals and companies generally cannot issue payment stablecoins in the United States unless they have secured a federal or state license. More stringent rules, including tighter restrictions on stablecoin offers and sales, will be enforced from July 18, 2028.
Treasury Secretary Scott Bessent stated that the department is accelerating efforts to roll out the new regulatory framework. He emphasized the need to support US leadership in the digital asset sector while protecting the status of the dollar as a global reserve currency.
President Trump and Congress have delivered the GENIUS Act, creating a landmark framework and providing clear rules for payment stablecoins. Treasury is moving quickly to implement that framework, Bessent stated. 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 US dollar as the world’s reserve currency, and ensure the US remains the crypto capital of the world.
Public consultation and regulatory uncertainties
The Treasury’s call for public input seeks feedback from crypto industry participants, banks, and other stakeholders on key aspects of the law. Topics for consultation include clarity in defining terms, establishing precisely when a stablecoin should be considered ‘issued,’ and identifying the due diligence requirements for digital asset service providers working with foreign issuers. The aim is to resolve uncertainties before the law’s main provisions take effect.
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AAPLThe GENIUS Act requires robust disclosure and backing standards for stablecoins, which are digital tokens pegged to traditional currencies or assets to maintain a stable value. The new legislation is expected to create a uniform licensing process, differentiating between entities allowed to issue payment stablecoins under full US oversight and those that cannot legally offer them to American users.
Mini dictionary: The GENIUS Act is a US law that establishes regulatory requirements and licensing standards for stablecoin issuers, including backing with high-quality, liquid assets and regular reserve disclosures.
Crypto regulation and legislative context
The Treasury’s regulatory push comes as US lawmakers continue to debate broader crypto legislation. The Clarity Act, a bill intended to define the structure and responsibilities of crypto market participants, was set for a vote in August but has been delayed until September.
Bessent has urged Congress to accelerate efforts on the Clarity Act to complement the GENIUS Act’s focus on stablecoins and to ensure comprehensive market rules are in place.
President Trump recently advocated for rapid progress on these reforms, arguing that such legal clarity is essential for the US to remain ahead of global competitors like China. Trump has also claimed that there is increasing use of Bitcoin for payments among US users.
| Key Date | Requirement |
|---|---|
| January 18, 2027 | Main effective date: Only licensed entities may issue stablecoins in the US |
| July 18, 2028 | Stricter prohibitions on unlicensed offer and sale of stablecoins begin |
As stakeholders prepare their responses for the Treasury consultation, the crypto industry will be closely watching how these efforts shape the regulatory landscape for stablecoins and digital assets in the coming years.
