The U.S. Treasury Department on Friday initiated a public comment period for proposed rules governing stablecoins under the GENIUS Act, a 2023 law establishing a federal framework for the sector.
The legislation, signed into law last December, mandates that the Treasury, in coordination with the Federal Reserve and other agencies, develop regulations for stablecoin issuers, including reserve requirements, redemption rights, and disclosure standards. The law is scheduled to take effect in January 2027, though finalized rules may not be completed by that date.
The Treasury’s notice, published in the Federal Register, invites stakeholders to submit feedback on the proposed regulatory approach within a 60-day comment period. Key areas of focus include the definition of stablecoins, capital and liquidity requirements for issuers, and consumer protection measures.
The GENIUS Act represents the first federal attempt to regulate stablecoins, filling a gap left by state-level frameworks such as New York’s BitLicense. Industry participants, including issuers, exchanges, and trade associations, are expected to weigh in on the scope and feasibility of the proposed rules.
The Treasury has not yet published draft regulations, but the public comment process signals the start of formal rulemaking. The agency has indicated it will coordinate with the Financial Stability Oversight Council to address systemic risks posed by stablecoins, particularly their potential impact on monetary policy and financial stability.
The 2027 effective date provides a runway for implementation, though delays in finalizing rules could create uncertainty for market participants. The Treasury’s move follows earlier consultations with the Federal Reserve and other regulators to align the framework with existing financial regulations.
Stakeholders have until the end of the comment period to submit written feedback, after which the Treasury will review submissions and publish a final rule or proposed rule for further comment.
