The U.S. Department of the Treasury has unveiled proposed federal definitions for stablecoins under the GENIUS Act, as regulators confront tight deadlines to finalise rules ahead of the law’s January 18 effective date. The draft guidelines, which outline requirements for stablecoin issuance and compliance, are open for public and industry feedback until mid-October, with stakeholders urged to address unresolved questions in the framework.
The proposal follows the government’s failure to meet a one-year target for rule implementation, which passed last month without resolution. Treasury Secretary Scott Bessent highlighted the administration’s focus on ensuring regulatory clarity to support innovation and reinforce the U.S. dollar’s status as a global reserve currency.
Uncertainties remain over how the rules will apply to foreign stablecoin issuers, including entities such as Tether, with no clear guidance on their compliance obligations. The proposed framework includes dozens of unresolved technical and legal questions, raising concerns about the feasibility of meeting the January deadline.
Industry observers have expressed caution, noting that the complexity of the issues at hand may delay finalisation beyond the stated timeline. The Treasury has not yet confirmed whether all provisions will be completed by the effective date, leaving the future of the GENIUS Act’s implementation in question.
Written by Steven Cook
Regulation Desk
