Treasury Proposes Rules Defining Who Can Legally Sell Stablecoins in US

The U.S. Department of the Treasury proposed rules Monday defining which stablecoins can be issued or sold in the United States under the GENIUS Act.

The proposal implements Section 3 of the GENIUS Act, signed into law last summer. According to the proposal, beginning January 18, 2027, stablecoin issuers generally must obtain a federal or state license. Platforms can also sell foreign-issued stablecoins, but only if the foreign issuer complies with U.S. legal orders and agreements between the U.S. and the country where it is regulated.

“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 wrote on X.

Starting July 18, 2028, broader restrictions would generally prevent crypto exchanges and other digital asset platforms from selling stablecoins to U.S. customers, “unless the payment stablecoin is issued by a permitted payment stablecoin issuer.”

Bessent said the regulations would provide businesses with regulatory certainty while helping “cement the role of the U.S. dollar,” and welcomed public input.

“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,” Bessent wrote.

Violations of these rules could include directly soliciting U.S. buyers, advertising a stablecoin as available to them, agreeing to sell after an unsolicited inquiry, or helping buyers bypass location restrictions such as IP checks.

Public comments on the proposal are due by October 19, 2026, 60 days after its publication in the Federal Register.

The news comes as federal agencies continue to write the rules for implementing the GENIUS Act, which President Donald Trump signed into law in July 2025 to establish a federal framework for stablecoins in the U.S.

In February, the Office of the Comptroller of the Currency proposed rules governing stablecoin issuance and oversight. The FDIC followed in April with proposed requirements for reserves, redemptions, capital, and risk management. That same month, the Treasury proposed anti-money laundering and sanctions rules requiring issuers to report suspicious activity and maintain the ability to block or freeze transactions.

Those proposed compliance rules have faced pushback from the crypto industry. In June, Paradigm and the Hyperliquid Policy Center warned that making issuers responsible for stablecoins after they enter secondary markets could drive them away from decentralized finance.