US Treasury Asks For Public Input on Landmark Genius Act Crypto Legislation

While the law was passed by Congress last year, U.S. regulations typically require agencies to draft and finalize more specific implementing rules — with a period for public comment — before those rules take legal effect. The overall effective date of the GENIUS Act is expected to be January 18, 2027, with stricter offer and sale prohibition of stablecoins prohibited from July 18, 2028. 

“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 in a statement. 

“Treasury welcomes input from stakeholders as we work to provide the regulatory certainty businesses need to innovate and grow in America, cement the role of the U.S. dollar as the world’s reserve currency, and keep America the crypto capital of the world,” he added. 

The statement added that from January 2027, a person generally may not “issue a payment stablecoin in the United States” unless the person has obtained an appropriate federal or state license. 

Questions for stakeholders in consultation include whether key terms are defined clearly enough, when exactly a stablecoin should be considered “issued,” and what due diligence obligations digital asset service providers should have when relying on a foreign issuer’s compliance representations. 

The consultation comes as the U.S. races to craft laws to regulate the crypto industry. Lawmakers were this month aiming to get a vote on the crypto market structure bill, the Clarity Act, but it was delayed until September. 

Bessent this year urged lawmakers to get the Clarity Act over the line. 

President Trump said this month passing legislation like the Clarity Act is necessary for the U.S. to take the lead over China. He also claimed that more people were using Bitcoin to make payments.