The US Treasury Department has proposed new licensing rules for payment stablecoin issuers under Section 3 of the GENIUS Act, initiating a public comment period for digital asset regulation. The proposed rulemaking was issued on August 18 and published on August 21.
Under the proposal, payment stablecoin issuers would be required to obtain a federal or state license starting January 18, 2027. Additionally, digital asset service providers would be prohibited from offering unlicensed stablecoins to US persons beginning July 18, 2028. Public comments on the proposal are open until October 19, 2026. The framework is not yet active law, and details remain subject to change following public feedback.
Key Timeline and Regulatory Pathways
The proposal outlines a dual path allowing for either federal or state licensing, accommodating both national oversight and state-level regimes. The framework aims to establish requirements regarding reserves, supervision, compliance, reporting, and redemption.
The 2028 service provider deadline serves as a significant market lever, directly affecting exchanges, wallets, payment apps, decentralized finance front ends, and custody platforms. Strict enforcement of the rule could restrict unlicensed issuers from accessing US-facing distribution channels while potentially favoring licensed issuers and consolidating market share among entities capable of absorbing compliance and auditing costs.
