Treasury Drafts GENIUS Act Rules: Licensing, US Circulation Limits, and 60-Day Comment Window

Woofun AI reports that the U.S. Treasury Department has advanced the implementation of the GENIUS Act by publishing a draft rule and initiating a 60-day public comment period for stablecoin regulation.

The regulatory mechanics mandate that issuers secure federal or state authorization before operating.

Notably, the proposal imposes strict restrictions on the circulation of stablecoins in the United States if they originate from overseas entities failing to meet specific requirements. This framework directly targets the U.S. market to ensure compliance.

Structurally, the draft clarifies the scope of application by defining what constitutes issuing a payment stablecoin in the U.S. It also delineates how broadly providing or selling stablecoins to U.S. users will be interpreted. Congress enacted this law to establish a legal framework that balances consumer protection, financial stability, and innovation.

A more critical variable is the operational impact on domestic and international issuers. The rule provides the operational details necessary for enforcement and compliance within a structured regulatory environment. Issuers serving U.S. customers must align with U.S. standards, while international stablecoin issuers may need to adjust their offerings to avoid restrictions.

Treasury Secretary Scott Bessent emphasized that clear regulation supports innovation and reinforces the dollar's role as the world's reserve currency, positioning the U.S. as a global crypto hub. The administration seeks stakeholder engagement from industry participants, legal experts, and consumer advocates during the comment period. Relevant agencies will review this feedback before finalizing the regulations.

This process marks a pivotal moment for the future of stablecoin regulation in the U.S. By finalizing the regulations, the Treasury aims to create a predictable regulatory environment that protects the financial system. The outcome could set a precedent for other jurisdictions, establishing a new standard for global crypto oversight.