The U.S. Department of the Treasury is seeking feedback from the public regarding the forthcoming implementation of new regulations for stablecoins.
The GENIUS Act, which was signed into law by former President Donald Trump, establishes a regulatory framework for stablecoins, which are digital assets pegged to the value of the U.S. dollar. Under this legislation, each stablecoin must be fully backed by liquid assets like cash or short-term U.S. Treasuries.
The Treasury Department is specifically asking for input on section 3 of the Act, which outlines the requirements for entities that wish to issue and sell stablecoins in the United States.
The GENIUS Act is scheduled to come into effect on January 18th, prohibiting unlicensed individuals from issuing stablecoins in the U.S.
Further restrictions will be enforced later on July 18th, 2028, which will prevent digital asset service providers from offering or selling payment stablecoins to U.S. residents unless the assets are issued by a licensed entity.
Treasury Secretary Scott Bessent stated that the department values the input of stakeholders in the stablecoin industry.
“President Trump and Congress passed the GENIUS Act, establishing a significant framework and clear regulations for payment stablecoins. The Treasury Department is working swiftly to implement this framework and welcomes feedback from stakeholders to provide regulatory certainty for businesses to innovate and thrive in the U.S., solidify the U.S. dollar as the global reserve currency, and maintain America’s position as the leading hub for cryptocurrency.”
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Featured Image: Shutterstock/Teo Tarras/Natalia Siiatovskaia