Summary
The GENIUS Act Section 18 allows foreign payment stablecoin issuers (FPSIs) to operate in the US only if: (1) Treasury determines their home jurisdiction's regime is "comparable" to the US framework, (2) they register with the OCC, (3) they hold reserves in a US financial institution, and (4) their home country is not under comprehensive US sanctions. Tether (BVI-incorporated) would need Treasury certification — not yet issued for any jurisdiction. The Stablecoin Certification Review Committee (Treasury Secretary + Fed Chair + FDIC Chair) makes the determination by 2/3 vote.
Key Points
- Section 18: FPSIs can offer/sell in US only if Treasury certifies home jurisdiction regime as "comparable" to GENIUS Act standards
- Registration with OCC required; OCC can reject based on financial/managerial resources, risk to US financial stability, or illicit finance risk
- Reserves must be held in a US financial institution
- Home jurisdiction must not be under comprehensive US sanctions
- Treasury has 210 days to render a decision on a comparability request
- No jurisdiction has been certified yet — Tether's BVI home has not applied
- Section 4(a)(11): PPSIs cannot pay yield/interest to stablecoin holders — affects Tether's lending products
- Section 3: after 3 years, only PPSI-issued stablecoins can be offered/sold in US — foreign issuers need certification
- Implementing rules due by July 18, 2026; effective date no later than January 18, 2027
- Fed Reserve Board has NOT yet published its proposed rule — significant implementation gap