U.S. Treasury Opens Feedback on New Stablecoin Rules

The U.S. Treasury Department wants to hear from the public regarding the upcoming enforcement of the GENIUS Act. This legislation sets new ground rules for stablecoins that are pegged to the U.S. dollar. Under these rules, every token must be fully backed by liquid assets like cash or short term U.S. Treasuries.

Regulators are focusing on section 3 of the Act, which determines who is legally allowed to issue and sell stablecoins in the United States. Starting January 18, it will be illegal to issue stablecoins within the country without a proper license. A second phase of the law kicks in on July 18, 2028, which will prevent service providers from selling stablecoins unless they come from a licensed issuer.

Treasury Secretary Scott Bessent stated that the department is moving fast to implement these rules. The goal is to provide businesses with the clarity they need to operate in the United States. By formalizing these standards, the Treasury aims to strengthen the role of the U.S. dollar and encourage growth in the domestic digital asset industry.

Market participants should watch for how these licensing requirements impact smaller stablecoin projects. As the January deadline nears, the industry will be closely monitoring how the Treasury processes this feedback and whether it leads to further adjustments in the regulatory approach.