The US Treasury Department has proposed federal or state licensing rules for payment stablecoin issuers under the GENIUS Act, with a public comment period running into October. Issuers would need a license starting January 18, 2027, and unlicensed stablecoins would be barred from US distribution by mid-2028.
The Treasury Department issued a proposed rulemaking for payment stablecoin issuers on August 18, published on August 21, under Section 3 of the GENIUS Act. Public comments stay open until October 19, 2026, and the proposal is not active law yet.
Two Licensing Paths, One Deadline
Under the proposal, payment stablecoin issuers would need a federal or state license starting January 18, 2027. The dual-track structure reflects a long-running tension between national oversight and state-level regimes: some issuers prefer state frameworks, while regulators may favor a unified federal approach.
That split could give issuers options, but it may also add complexity. The quality of state supervision, reciprocity, reserve standards, and enforcement coordination will all matter once the rule takes effect.
Service Providers Face A 2028 Cutoff
The proposal's other deadline may carry more weight for the market. By July 18, 2028, digital asset service providers would be prohibited from offering unlicensed stablecoins to US persons. That could affect exchanges, wallets, payment apps, DeFi front ends, custody platforms, and other intermediaries.
If enforced strictly, the rule could push liquidity toward licensed stablecoins, while unlicensed and offshore issuers may lose access to US-facing distribution channels.
A Possible Push Toward Consolidation
Larger issuers may be better positioned to absorb compliance costs, maintain reserves, and handle audits than smaller competitors. That dynamic could consolidate stablecoin market share around a smaller number of licensed players, trading a more experimental market for a more regulated one.
What Happens Next
Stablecoin issuers, exchanges, banks, fintechs, and crypto policy groups are likely to respond during the comment period, challenging definitions, deadlines, and licensing standards. The Treasury can revise the rule once comments close on October 19.
It remains a proposal rather than law, but one the stablecoin industry cannot ignore.
Source: NewsBTC
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