The U.S. Department of the Treasury is seeking feedback from the public regarding the upcoming enforcement of new regulations for stablecoins. The GENIUS Act, which was signed into law by President Donald Trump last year, establishes a regulatory framework for stablecoins, which are digital assets pegged to the value of the U.S. dollar. One of the key requirements of the legislation is that each stablecoin must be fully backed by liquid assets such as cash or short-term U.S. Treasuries.
The Treasury Department is specifically interested in hearing opinions on section 3 of the GENIUS Act, which outlines the criteria for entities that are permitted to issue and sell stablecoins in the United States. Starting on January 18th, it will be illegal for individuals to issue stablecoins in the U.S. unless they are licensed to do so. Further restrictions will come into effect on July 18th, 2028, which will prevent digital asset service providers from offering or selling payment stablecoins to U.S. residents unless the stablecoins are issued by a licensed entity.
Treasury Secretary Scott Bessent emphasized the importance of stakeholder input in the implementation of the GENIUS Act. He stated, “President Trump and Congress have introduced the GENIUS Act to establish a comprehensive framework and clear guidelines for payment stablecoins. The Treasury Department is committed to swiftly implementing this framework and welcomes feedback from stakeholders to ensure regulatory certainty for businesses to thrive in the U.S. We aim to solidify the position of the U.S. dollar as the global reserve currency and maintain America’s status as a leader in the cryptocurrency industry.”
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The featured image for this article is sourced from Shutterstock and credits Teo Tarras/Natalia Siiatovskaia for the artwork.