Treasury's GENIUS Plan to Tame Wild Stablecoins
Published Date: 8/18/2026
Proposed Rule
Summary
The Department of the Treasury (Treasury) proposes to issue regulations to implement section 3 of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act regarding the statutory prohibitions and limitations on payment stablecoin issuance, offer, and sale in the United States.
Analyzed Economic Effects
8 provisions identified: 3 benefits, 5 costs, 0 mixed.
Issuing Stablecoins in U.S. Is Restricted
It is unlawful for any person other than a permitted payment stablecoin issuer to issue a payment stablecoin in the United States under section 3(a). Knowing participation in a violation can be punished by a fine of up to $1,000,000 per violation, imprisonment for up to five years, or both.
Providers Can't Offer Non‑Permitted Stablecoins After 2028
Beginning July 18, 2028, a digital asset service provider may not offer or sell a payment stablecoin to a person located in the United States unless the payment stablecoin is issued by a permitted payment stablecoin issuer. This prohibition is codified in proposed Sec. 1523.3 to implement section 3(b)(1) of the Act.
Immediate Limits on Foreign‑Issued Stablecoins
On the Act's effective date (expected January 18, 2027), it is unlawful for any digital asset service provider to offer, sell, or otherwise make available in the United States a payment stablecoin issued by a foreign payment stablecoin issuer unless that foreign issuer has the technological capability to comply, and will comply, with lawful orders and reciprocal arrangements under section 18. Proposed Sec. 1523.3 codifies this rule.
Foreign Issuers Can Be Allowed If Registered and Comparable
Section 18(a) provides that the section 3 prohibitions do not apply to a foreign payment stablecoin issuer if (i) the issuer is subject to regulation and supervision by a foreign regulator whose regime the Secretary of the Treasury determines is comparable to the GENIUS Act framework, and (ii) the foreign payment stablecoin issuer is registered with the OCC. Proposed Sec. 1523.2 incorporates this pathway.
When a Stablecoin Is Treated as 'Issued'
Treasury proposes to define 'issue' as the issuer's first transfer of a payment stablecoin (directly or indirectly), including crediting an account, that results or will result in a person other than the issuer having rights to use, transfer, or redeem it. Treasury would also treat a subsequent transfer after redemption as a new issuance, subject to the 'except as required by a lawful order' carve-out.
Advertising or Advising Evasion Can Be an Offer
Proposed Sec. 1523.3(d) lists activities that constitute offering or selling to persons in the U.S., including directly soliciting a person located in the United States, advertising a payment stablecoin as available for purchase by persons located in the United States, and advising potential purchasers on how to evade location detection or restriction mechanisms.
Personal Transfers and Self‑Custody Are Exempt
Section 3(h) of the Act expressly exempts (i) direct transfers of digital assets between two individuals acting on their own behalf without an intermediary, (ii) transfers between an individual's U.S. account and the individual's abroad account offered by the same parent company, and (iii) transactions using software or hardware wallets that facilitate an individual's own custody. These transactions are not covered by the Act's section 3 prohibitions.
Temporary 12‑Month Waiver for Some Issuers
Section 5(f) authorizes primary Federal payment stablecoin regulators to waive application of the Act's requirements for up to 12 months beginning on the Act's effective date for subsidiaries of insured depository institutions and Federal qualified payment stablecoin issuers with a pending application on the effective date. Treasury's proposal notes this waiver authority.
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Key Dates
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