U.S. Treasury · US Congress · Scott Bessent · CoinDesk
U.S. Treasury Department proposes GENIUS Act stablecoin rule
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The U.S. Department of the Treasury has taken another big step toward implementing the new stablecoin law, proposing federal definitions on what it means to issue U.S. stablecoins and who needs to follow the rules set out in the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, even as the law's deadlines are fast approaching.
Key facts
- The next mark is the effective date of the law, which is supposed to come by January 18
- The process of implementing GENIUS exists in a delicate space alongside the effort in Congress to pass its Digital Asset Market Clarity Act that would rewrite some portions of GENIUS, most notably
- The proposed rule poses dozens of questions about the best approach to interpreting the law, each of which must be answered before the final sign-off
- The industry will pay special attention to how it approaches foreign issuers, such as industry leader Tether
Summary
The first major proposal to implement the GENIUS Act has emerged from the Treasury Department, marking a significant milestone in the process to put U.S. stablecoin regulations in place. The administration, including banking and markets regulators, are well past the one-year deadline set out in the law, which expired last month, but the regulators are making steady progress to implement the rules for operating U.S. stablecoin issuers. The U.S. Stablecoins (GENIUS) Act, even as the law's deadlines are fast approaching. The department is among several government entities and agencies that must put rules in place before the stablecoin industry's U.S. law is in full effect, also including the banking and markets regulators.