On Monday, the U.S. Treasury Department took another major step toward establishing rules for the U.S. stablecoin market, issuing a Notice of Proposed Rulemaking to implement Section 3 of the GENIUS Act.

The proposal addresses a central question: who may issue, offer or sell payment stablecoins in the United States, and under what conditions. Comments are due October 19, 2026.

Beginning January 18, 2027, payment stablecoins could not be issued in the U.S. unless the issuer is appropriately licensed. Treasury proposes that a stablecoin would be considered issued in the United States if either the issuer or the person receiving the stablecoin is located in the U.S.

The proposal also addresses distribution. Beginning July 18, 2028, digital asset service providers could not offer or sell stablecoins to U.S. customers unless they are issued by permitted issuers. Treasury also proposes requirements for foreign-issued stablecoins, including the ability to comply with lawful U.S. orders and applicable reciprocal arrangements.

Treasury is also seeking to clarify what constitutes an "offer" or "sale," including activities such as soliciting U.S. customers, advertising stablecoins for purchase in the U.S., entering into sales agreements or helping users circumvent geographic restrictions.

Review the proposed rulemaking in today's Federal Register.