U.S. Treasury issues NPRM implementing Section 3 of the GENIUS Act on payment stablecoin issuance and sales.

Licensed issuers required starting January 18, 2027; platform restrictions begin July 18, 2028.

Public comments due by October 19, 2026.

Proposal aims to clarify definitions for regulatory certainty in the stablecoin market.

The U.S. Department of the Treasury on August 17 issued a Notice of Proposed Rulemaking seeking public comment related to its implementation of section 3 of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.

The NPRM proposes a framework defining what it means to issue a payment stablecoin in the United States and to offer or sell a payment stablecoin to a person in the United States, providing clarity on when issuers need a GENIUS license and how platforms can distribute tokens, according to the official Treasury statement.

"President Trump and Congress delivered the GENIUS Act, establishing a landmark framework and clear rules of the road for payment stablecoins, and Treasury is moving quickly to implement that framework," Treasury Secretary Scott Bessent said.

Under the Act, enacted July 18, 2025, beginning on January 18, 2027, a person generally may not issue a payment stablecoin in the United States unless licensed at the federal or state level. Digital asset service providers generally may not offer foreign-issued payment stablecoins unless the foreign issuer has the technological capability to comply with lawful orders and any reciprocal arrangement with the United States.

Beginning July 18, 2028, digital asset service providers generally may not offer or sell any payment stablecoins to persons in the United States unless issued by a licensed issuer, as reported by Decrypt and CoinDesk.

Comments on the proposal must be received on or before October 19, 2026. The rules build on an advance notice of proposed rulemaking issued last September and seek to support innovation while cementing the U.S. dollar as the world’s reserve currency.

Bessent noted that Treasury welcomes stakeholder input "as we work to provide the regulatory certainty businesses need to innovate and grow in America... and keep America the crypto capital of the world."

Payment stablecoins under the GENIUS Act must be backed 1:1 by liquid reserves such as U.S. currency, demand deposits, or short-term Treasuries. The proposal represents a critical step in operationalizing the first comprehensive U.S. federal framework for these assets.