The U.S. Department of the Treasury has proposed a rule defining what it means to issue U.S. stablecoins and who must follow requirements under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, marking the first major proposal to implement the law.
Treasury Secretary Scott Bessent said Monday the administration is trying to move quickly to put the rules in place "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," according to a statement.
The proposal states that Treasury approached stablecoins as a distinct category, though it referenced established securities laws, noting their "longstanding legal regimes that address the issue, offer, and sale of other financial instruments, such as securities, including offshore activities." At the same time, the department said applying traditional investment rules to payment stablecoins "may frustrate" the law's intent for them to serve as an effective means of payment and settlement, including across borders.
Monday's proposal follows an advance notice Treasury issued in September of last year. The public and the stablecoin issuer industry now have 60 days to submit comments, with a response deadline set for mid-October. Treasury will then need further months to review feedback before issuing a final rule.
