U.S. Treasury unveils draft rules to implement GENIUS Act

The U.S. Treasury Department has released a draft rule to implement the GENIUS Act, a stablecoin regulation law, and opened a 60-day public comment period. The proposal focuses on setting detailed standards to apply the law’s requirements in the market, including issuer licensing and restrictions on circulation in the United States. It is set to clarify what qualifies as issuing a payment stablecoin in the United States and how broadly providing or selling stablecoins to U.S. users will be defined. Under the GENIUS Act, businesses seeking to issue payment stablecoins in the United States are generally required to obtain federal or state authorization, while stablecoins issued by overseas issuers that fail to meet certain requirements are also restricted from circulating in the United States. The law has already been enacted, and the U.S. Treasury and related agencies are now drafting the implementing rules needed for actual regulatory enforcement. U.S. Treasury Secretary Scott Bessent said clear regulation would support innovation by U.S. companies while strengthening the dollar’s role as the world’s reserve currency and making the United States a global crypto hub.