Treasury Proposes Stablecoin Licensing Rules Under GENIUS Act
The US Treasury has proposed rules under Section 3 of the GENIUS Act that would require payment stablecoin issuers to obtain federal or state licenses starting January 18, 2027. By July 18, 2028, digital asset service providers would be barred from offering unlicensed stablecoins to US persons. Public comments are open until October 19, 2026, and the proposal is not yet active law. The framework would bring stablecoin oversight closer to banking and payments regulation, with requirements likely covering reserves, supervision, compliance, reporting, and redemption. A federal-or-state licensing path could give issuers flexibility but also create complexity. The 2028 service-provider deadline could pressure exchanges, wallets, payment apps, and DeFi front ends to favor licensed stablecoins, potentially consolidating the market around larger issuers.
