Key takeaways
- Treasury proposed rules implementing section 3 of the GENIUS Act in August 2026: who may issue payment stablecoins in the US, and when service providers may offer them.
- A stablecoin would be "issued" at its first transfer by the issuer that gives someone the right to use, transfer, convert, redeem or repurchase it.
- Issuance has a US nexus if the issuer operates in the US or the stablecoin goes to a person located in the US.
- From July 18, 2028, service providers must stop offering non-permitted stablecoins to US persons and must perform due diligence on foreign issuers.
- Public comments close October 19, 2026 at regulations.gov.
What Treasury proposed
On August 17, 2026, Treasury announced a notice of proposed rulemaking implementing section 3 of the GENIUS Act, published in the Federal Register the following day. Section 3 is the core prohibition of the law: only a permitted payment stablecoin issuer may issue a payment stablecoin in the United States once the Act takes effect, expected on January 18, 2027 (or earlier, 120 days after final implementing regulations are issued).
The proposal does not create the licenses themselves (that is the role of the OCC, the other federal banking agencies and state regulators). Instead, it draws the perimeter: which activities trigger the licensing requirement, and what intermediaries must check before offering a stablecoin to US customers.
When is a stablecoin "issued"?
Under the proposal, a payment stablecoin is considered issued upon its first transfer by the issuer that gives another person the right to use, transfer, convert, redeem or repurchase it. Minting tokens that stay in the issuer's own treasury would not, on its own, count as issuance. A reissuance occurs when tokens that were redeemed or reacquired are transferred out again.
This matters operationally: issuers will need to track the moment tokens leave their control, not only when they are minted on-chain.
When does issuance happen "in the United States"?
Issuance would have a US nexus if the issuer operates in the United States, or if the stablecoin is transferred to a person located in the United States. Foreign issuers would benefit from protection for transactions where they reasonably believe the recipient is located outside the US and have appropriate safeguards in place.
For non-US issuers, this puts customer-location controls (IP and geolocation checks, KYC data, distribution agreements) at the center of their compliance design.
What changes for exchanges and wallets
From July 18, 2028, digital asset service providers may not offer or sell payment stablecoins to US persons unless they are issued by a permitted issuer or a qualifying foreign issuer. Providers would have to perform reasonable due diligence before relying on a foreign issuer's representation that it can and will comply with lawful US orders and applicable reciprocal arrangements.
The other pieces of the rulebook
This proposal is one of several implementing rules:
- AML and sanctions: in April 2026, Treasury (FinCEN and OFAC) proposed rules treating permitted issuers as financial institutions under the Bank Secrecy Act, with AML/CFT and sanctions compliance program requirements.
- Federal licensing: the OCC has proposed regulations for the issuers it will supervise.
- Other federal banking agencies and state regulators are defining their own requirements.
What it means for you
| If you are… | Action now |
|---|---|
| A planned US issuer | Map your token flows to the "first transfer" test and confirm your licensing pathway before January 2027. |
| A foreign issuer | Review customer-location controls and your strategy for US access (comparable regime, US subsidiary, or strict geo-fencing). |
| An exchange or wallet | Inventory the stablecoins you list, and design foreign-issuer due diligence ahead of July 2028. |
| A bank or fintech partner | Assess whether your role in distribution or redemption could be treated as issuance. |
How to comment before October 19, 2026
- Find the Treasury GENIUS Act section 3 proposed rule on regulations.gov.
- Answer the specific questions that matter to your business model, with concrete examples.
- Submit before the deadline. Comments are public, so leave out confidential information.
What happens next
After the comment period, Treasury will review submissions and publish a final rule. Details, especially on foreign issuers and the "first transfer" test, could still change. We will update this page and our licensing guide when the final rule is released.
U.S. Department of the Treasury press release "Treasury Seeks Public Comment on GENIUS Act Proposed Rulemaking" (August 17, 2026); Federal Register, proposed rule on PPSI AML/CFT and sanctions programs (April 10, 2026); OCC Bulletin 2026-3. This article is general information, not legal advice.