The U.S. Department of the Treasury is moving quickly on cryptocurrency regulation, asking for public comment on the landmark GENIUS Act, the federal law that created a framework for payment stablecoins.

Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to a reference asset such as the U.S. dollar. They have become a core part of crypto markets, used for trading and, increasingly, for payments, with Tether's USDT and Circle's USDC the most widely circulated tokens.

In a Monday announcement, the Treasury said it was welcoming input from stakeholders on a proposed rule that would provide clarity to the industry on who needs a license to issue a stablecoin.

President Donald Trump signed the GENIUS Act — the Guiding and Establishing National Innovation for U.S. Stablecoins Act — into law in 2025, creating the first comprehensive federal framework for payment stablecoins in the United States. The legislation allows banks and other entities to issue stablecoins if they back the tokens with assets like U.S. Treasuries and provide monthly disclosures of their reserves. Mainstream finance had already begun moving into the space — PayPal launched its dollar-backed stablecoin, PYUSD, in 2023 — and because issuers hold their reserves in U.S. government debt, Treasury officials have framed the sector's growth as an additional source of demand for Treasuries.

While the law was passed by Congress last year, U.S. regulations typically require agencies to draft and finalize more specific implementing rules — with a period for public comment — before those rules take legal effect. The overall effective date of the GENIUS Act is expected to be January 18, 2027, with stricter offer and sale prohibitions for stablecoins applying from July 18, 2028. That timetable makes the current comment window the main opportunity for banks, payment firms and crypto companies to shape definitions and obligations before the licensing regime takes effect.

JUST IN: Treasury Secretary Scott Bessent says the "Treasury is moving quickly to implement" the GENIUS Act "Beginning on January 18, 2027, the expected effective date of the GENIUS Act," pic.twitter.com/VCxbnwNM5G — Bitcoin Magazine (@BitcoinMagazine) August 17, 2026

"President Trump and Congress delivered the GENIUS Act, establishing a landmark framework and clear rules of the road for payment stablecoins, and Treasury is moving quickly to implement that framework," Treasury Secretary Scott Bessent said in a statement.

"Treasury welcomes input from stakeholders as we work to provide the regulatory certainty businesses need to innovate and grow in America, cement the role of the U.S. dollar as the world's reserve currency, and keep America the crypto capital of the world," he added.

The statement added that from January 2027, a person generally may not "issue a payment stablecoin in the United States" unless the person has obtained an appropriate federal or state license.

Questions for stakeholders in the consultation include whether key terms are defined clearly enough, when exactly a stablecoin should be considered "issued," and what due diligence obligations digital asset service providers should have when relying on a foreign issuer's compliance representations. The last question is significant in practice: the largest stablecoin by circulation, Tether's USDT, is issued by a company based outside the United States.

The consultation comes as the United States races to craft laws to regulate the crypto industry. Lawmakers were this month aiming to get a vote on the crypto market structure bill, the Clarity Act, but it was delayed until September. That bill would divide oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission, giving exchanges and brokers a market-structure counterpart to the stablecoin regime Treasury is now implementing.

Bessent this year urged lawmakers to get the Clarity Act over the line.

President Trump said this month that passing legislation like the Clarity Act is necessary for the U.S. to take the lead over China. He also claimed that more people were using Bitcoin to make payments.

Source: Bitcoin Magazine