Treasury proposes licensing rules for stablecoin issuers

The US Treasury proposed rules to implement the GENIUS Act, setting out how payment stablecoin issuers will be licensed and regulated. Beginning January 18, 2027, entities will generally be barred from issuing payment stablecoins in the United States without a federal or state authorisation.

Violations carry penalties of up to $1 million and up to five years in prison. The proposal also addresses how foreign-issued stablecoins can access the US market, and Treasury is accepting public comment on the rule until October 19, 2026.

A licensing regime that applies equally to domestic and foreign issuers pushes stablecoins toward the same authorisation model that banks already operate under.