Treasury proposes next phase of GENIUS Act implementation
The U.S. Treasury Department has issued a notice of proposed rulemaking regarding the implementation of the GENIUS Act, which regulates stablecoin issuance. The act sets strict licensing requirements for stablecoin issuers and digital asset service providers starting in 2027.
Why it matters
This regulatory framework will significantly impact the U.S. cryptocurrency market and how financial institutions, including credit unions, handle digital assets.
News overview Treasury proposes next phase of GENIUS Act implementation August 18, 2026 The Treasury Department is seeking public comments related to implementation of section 3 of the GENIUS Act, building upon the agency’s previous proposals and r equests for feedback . Treasury issued its notice of proposed rulemaking (NPRM) Monday.
Section 3 provisions of the GENIUS Act prohibit the issuance, offer, sale, and availability of stablecoins to individuals in the United States unless done so through a permitted payment stablecoin issuer. Beginning Jan. 18, 2027, the expected effective date of the GENIUS Act, a person generally may not issue a payment stablecoin in the U.S. unless the person has obtained an appropriate federal or state license.
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