GENIUS Act stablecoin rule: Treasury targets Tether as deadline slips
The U.S. Treasury Department has put forward a detailed proposal to define who counts as a stablecoin issuer under the new federal law, pushing forward on the GENIUS Act stablecoin rule even as key deadlines slip past the calendar. The move, unveiled Monday, sets the stage for a 60-day public feedback window before regulators attempt to lock in a final version of the rule that will govern how payment stablecoins operate inside the United States.
Key takeaways
- Treasury proposed federal definitions for stablecoin issuers under the GENIUS Act, marking the first major implementation step for the law.
- A 60-day public comment period is now open before the department moves toward a final rule.
- Payment stablecoins won’t automatically be treated like securities, since Treasury says they serve payment and settlement functions.
- Foreign issuers, including Tether, are expected to face close scrutiny over how the rules apply to companies operating outside the U.S.
- The law’s one-year rulemaking deadline passed in July, with a January 18 effective date still looming.
U.S. Treasury Proposes Federal Definitions for Stablecoin Issuers
Treasury’s proposal spells out, for the first time in formal rule language, what it actually means to issue a U.S. payment stablecoin and which businesses fall under the law’s reach. It’s the clearest signal yet that regulators are trying to translate the GENIUS Act’s broad text into workable, day-to-day compliance standards for an industry that has been operating with limited federal guardrails.
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