Treasury Department Advances GENIUS Act Regulations Beyond July Compliance Deadline
A federal stablecoin law enacted in 2025 is set to become effective in January 2027, with the possibility that final regulations from federal agencies may not be completed in time.
The Department of the Treasury of the United States released a notice of proposed rulemaking concerning the rollout of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, legislation designed to create a regulatory framework for payment stablecoins that was enacted into law in the previous year.
According to a Monday announcement, the Treasury Department indicated it was soliciting public commentary on the proposed regulation in advance of the GENIUS Act's January 2027 implementation date. Based on the legislation's provisions, the stablecoin law was set to take effect either 120 days following the finalization of agency rules, or 18 months after its passage in July 2025, establishing Jan. 18, 2027, as the effective date.
Treasury Secretary Scott Bessent stated that the department "welcomes input from stakeholders as [it works] to provide the regulatory certainty businesses need to innovate and grow in America."
In conjunction with the Treasury Department, additional federal government agencies such as the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board have released notices of proposed rulemaking throughout 2026 in connection with GENIUS implementation. Nevertheless, all departments have reportedly failed to meet the 120-day July deadline for finalizing regulations prior to January, indicating that GENIUS may become effective without comprehensive guidance in place.
Based on Treasury's announcement, after the GENIUS Act becomes effective, an organization will generally be prohibited from "issue a payment stablecoin" within the United States without obtaining an appropriate federal or state license. The department's proposed regulations are available for public comment during a 60-day period after publication in the Federal Register.
US-UK regulators discuss GENIUS progress
During July, the UK-US Financial Regulatory Working Group convened in London to examine collaboration between the financial agencies of both countries, which included discussion of the GENIUS Act implementation.
While UK regulators have initiated measures to establish stablecoin regulation, the approaching implementation of GENIUS has led certain cryptocurrency industry experts to contend that the country is lagging behind the US.