# US Treasury Seeks Public Feedback on New Framework and Proposed Rules Under the GENIUS Act

> The US Department of the Treasury has invited public comments on a newly proposed regulatory framework for issuing and offering payment stablecoins under the GENIUS Act.

**Type:** article · **Category:** Crypto · **Published:** 2026-08-18 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/crypto/us-treasury-seeks-public-feedback-on-new-framework-and-proposed-rules-under-the-genius-act-17952 · **Language:** English
**Tags:** GENIUS Act, Stablecoins, US Treasury, Crypto Regulation, Scott Bessent, Digital Currency

The US Department of the Treasury has officially published a set of proposed rules designed to clarify the issuance, offering, and sale of payment stablecoins under the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The newly unveiled framework aims to establish a comprehensive regulatory structure for digital currencies operating within the United States.

Under the proposed legislation, only permitted issuers will generally hold the authorization to offer stablecoins to customers in the US. Starting from the anticipated effective date of January 18, 2027, all participating issuers will be required to acquire an appropriate state or federal license to legally conduct their operations.

Foreign-issued stablecoins will also face strict regulatory oversight. The Treasury highlighted that foreign issuers who successfully meet the specific criteria outlined under Section 18 of the GENIUS Act may be permitted to issue payment stablecoins domestically, provided they comply with all applicable requirements. This process mandates official registration with the Office of the Comptroller of the Currency (OCC).

US Treasury Secretary Scott Bessent emphasized that the newly introduced rules are structured to grant businesses greater regulatory certainty while fostering technological innovation and preserving the dominant role of the US dollar across global financial markets. Stakeholder input is actively being welcomed to help solidify America's position as the global hub for cryptocurrency development and economic growth.

The Treasury's proposal further attempts to clarify the exact activities that constitute offering or selling payment stablecoins to individuals residing in the US. Examples include direct solicitation of American customers, marketing a stablecoin as accessible to domestic buyers, responding affirmatively to unsolicited queries from users in the country, and entering into formal sales contracts with local residents.

Measures are also outlined to target attempts aimed at circumventing American restrictions. A digital asset service provider could be determined to have offered or sold a stablecoin within the US if they instruct prospective buyers on how to bypass location-detection mechanisms meant to block domestic transactions. Furthermore, the agency is evaluating whether payment stablecoin airdrops should qualify as formal offers even when recipients provide no financial consideration.

Certain specific transactions are granted exemptions under the proposed framework. These include direct peer-to-peer transfers between individuals acting on their own behalf, transfers between a person's domestic and foreign accounts held under the same parent organization, and transactions executed through hardware or software wallets utilized for self-custody purposes.

Engaging in unlawful stablecoin issuance carries severe legal consequences. Violators could face penalties reaching up to $1 million per violation, imprisonment for a period of up to five years, or both.

Public comments regarding the proposed rulemaking must be submitted within 60 days following its official release in the Federal Register.

## What this means for you
**Across India:** Global shifts in stablecoin regulations and US dollar dominance frameworks indirectly influence international crypto markets, cross-border remittance trends, and digital asset strategies for investors.

**In United States:** Businesses, fintech firms, and crypto issuers must prepare for strict licensing requirements, OCC registration, and potential legal penalties under the GENIUS Act framework ahead of 2027.

## Questions & Answers

### 1. What is the GENIUS Act?
The GENIUS Act establishes a comprehensive regulatory framework for issuing, offering, and selling payment stablecoins in the United States.

### 2. When do stablecoin issuers need to obtain a license?
Issuers are required to secure an appropriate federal or state license beginning on the expected effective date of January 18, 2027.

### 3. What are the penalties for unlawful stablecoin issuance?
Participation in unlawful issuance can attract fines of up to $1 million per violation and imprisonment for up to five years.

### 4. Can foreign stablecoin issuers operate in the US?
Yes, if they satisfy Section 18 criteria of the GENIUS Act and complete registration with the Office of the Comptroller of the Currency.

### 5. How long does the public have to submit comments?
Public comments must be submitted within 60 days of the NPRM's release in the Federal Register.

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