The US Treasury has issued a notice of proposed rulemaking (NPRM) for the GENIUS Act with a 60 day comment period. The rules cover only Section 3, which deals with payment stablecoin issuance, offer and sale. The NPRM follows two previous Treasury proposals on the GENIUS Act, one on illicit finance and one on equivalence for state regulated stablecoins, as well as a broader advance notice of proposed rulemaking.
The draft rules clarify the jurisdictional trigger. A covered payment stablecoin is one that is either issued in the US or issued to a person located in the US. A US resident on holiday abroad at the time of issuance is not covered, nor is a non-US resident temporarily in the States. An airdrop to a US resident who is physically present, however, is covered.
A few timelines are notable. The requirement to use only regulated payment stablecoins commences on the Act’s effective date, which is expected to be 18 January 2027, as does the rule governing which permitted foreign stablecoins can be issued or sold. Crypto exchanges have another 18 months of leeway before it becomes unlawful for them to offer or sell a non-permitted payment stablecoin to a US person. However, for foreign issued stablecoins the earlier 18 January 2027 cutoff applies.
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