The U.S. Department of the Treasury has proposed comprehensive federal definitions outlining the issuance of U.S. stablecoins and specifying which entities fall under the mandate of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The move represents a major step toward bringing the new stablecoin law into full effect, though statutory deadlines for implementation continue to approach rapidly. Treasury joins several other federal banking and market regulators tasked with finalizing oversight frameworks for the digital asset sector.

Treasury Secretary Scott Bessent emphasized Monday that the administration is working swiftly to establish regulatory certainty to foster domestic business innovation, reinforce the U.S. dollar’s role as the global reserve currency, and maintain the nation’s position as a crypto hub. While Treasury examined established securities laws for reference, the proposal notes that applying traditional investment rules could frustrate Congress’s intent for stablecoins to function as efficient cross-border payment and settlement mechanisms.

The latest proposal follows an advance notice issued last September and opens a 60-day public comment window running through mid-October. The document poses dozens of key questions—including specific guidance on foreign issuers such as Tether—that must be resolved before a final rule is issued. Although the law’s initial one-year implementation deadline passed last month without full compliance, agencies are now aiming toward the law’s official effective date of January 18, though transition periods and delayed final rules remain likely.

These regulatory proceedings unfold alongside broader legislative uncertainty on Capitol Hill. Efforts to pass the Digital Asset Market Clarity Act—which seeks to amend provisions of the GENIUS Act regarding exchange rewards programs—have stalled following a failed procedural vote in the Senate prior to the August recess.