Treasury Proposes GENIUS Act Rules Restricting Who Can Issue Stablecoins

The US Treasury Department published a Notice of Proposed Rulemaking on August 18, 2026 in the Federal Register implementing Section 3 of the GENIUS Act, the stablecoin law Trump signed in 2025, seeking public comment on which entities may lawfully issue payment stablecoins in the United States. Under the proposal, only federally or state-licensed issuers could offer stablecoins in the US starting July 18, 2028, with violations carrying fines up to $1 million and up to five years in prison. The GENIUS Act is due to take full effect January 18, 2027, though the law's original one-year deadline for finalizing implementing rules already passed in July without full compliance. Comments on the proposed rule are due by October 19, 2026.