US Treasury Opens Public Input for GENIUS Act Stablecoin Rules

The U.S. Department of the Treasury has officially requested public comment on proposed rules for the GENIUS Act. This legislation, signed into law by President Trump in 2025, sets a clear framework for how banks and other institutions can issue stablecoins. To operate under these new rules, issuers must back their tokens with assets like U.S. Treasuries and provide regular reports on their reserves.

Treasury Secretary Scott Bessent stated that the department is working to put these rules in place quickly. The goal is to provide enough clarity for businesses to grow while strengthening the status of the U.S. dollar. Starting January 18, 2027, issuers will generally need a federal or state license to issue payment stablecoins in the United States.

The current consultation period asks stakeholders for their views on technical details, such as how to define the term issuer and what due diligence is needed for foreign entities. These rules are part of a broader government effort to create a consistent legal environment for the crypto market. With the effective date set for early 2027 and stricter prohibitions planned for 2028, traders and companies should watch these updates closely.