Treasury Moves on GENIUS Act as Deadline Pressure Builds

TLDR

• The U.S. Treasury proposed new federal definitions for stablecoin issuers under the GENIUS Act framework.
• The proposal opens a 60-day public comment period before Treasury moves toward a final rule.
• Treasury said payment stablecoins should not automatically follow traditional securities rules because they serve payment and settlement functions.
• Foreign stablecoin issuers, including major firms such as Tether, could face close review under the proposed framework.
• The GENIUS Act implementation timeline is already under pressure, with the July rulemaking target missed and a January 18 effective date approaching.

The U.S. Treasury Department has proposed a new GENIUS Act stablecoin rule that defines who can issue payment stablecoins and which businesses must follow the federal framework. The proposal moves the government closer to applying the new U.S. stablecoin law as agencies work through missed deadlines and unfinished rules.

Treasury Secretary Scott Bessent said the administration wants to move quickly and give businesses clearer rules. Treasury is working with banking and market regulators that also need to issue standards before the law can operate fully.

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