Summary

The Treasury's proposed rule (Part 1523) implements section 3 of the GENIUS Act, establishing the operational framework for who may issue, offer, sell, or make available payment stablecoins in the US. It defines "issue" as the first transfer of a newly minted token, restricts issuance to permitted (or compliant foreign) issuers, imposes two-tier obligations on digital asset service providers (DASPs), and provides exemptions and safe harbors. Treasury deliberately did not apply securities-law frameworks like Regulation S, treating payment stablecoins as neither securities nor commodities.

Key Points

• Treasury proposed Part 1523 (Federal Register Aug 18); comments due Oct 19, 2026
• "Issue" defined as the first transfer of a newly issued payment stablecoin to an outside party
• Core prohibition (§3(a)): only permitted payment stablecoin issuers (or compliant foreign issuers) may issue in the US
• DASPs must: (1) from July 18, 2028, offer/sell only stablecoins from permitted issuers; (2) from Jan 18, 2027, ensure foreign issuers can/will comply with lawful orders and reciprocal arrangements
• DASPs may rely on a foreign issuer's representation after "reasonable due diligence"
• Exemptions/safe harbors: peer-to-peer transfers; same-parent interaccount transfers; self-custody wallets; comparable foreign regime (registered with OCC); pending-application waivers; de minimis and unusual/exigent safe harbors
• "Reasonable belief" safe harbor: foreign issuer not located in US, reasonable belief customers outside US, controls to avoid serving US residents, no US-targeted advertising
• Treasury deliberately did NOT adopt securities-law frameworks (e.g., Regulation S); stablecoins are not securities/commodities
• The Act is expected to be effective Jan 18, 2027 (statutory date)
• Follows Treasury ANPRM (Sept 2025) and interagency rulemaking from OCC, FDIC, NCUA, Federal Reserve
• Broad definition of "digital asset service provider" implicates many non-issuer firms
• Treasurer Scott Bessent: rules needed to cement the US dollar as the world's reserve currency

Sources

• https://thefederalregister.org/documents/2026-16796/genius-act-regulations-on-payment-stablecoin-issuance-offer-and-sale
• https://www.jdsupra.com/legalnews/treasury-proposes-rules-to-implement-3-1129959/
• https://www.jonesday.com/en/insights/2026/08/us-treasury-proposes-genius-act-rules-for-stablecoin-issuance-offer-and-sale
• https://www.coindesk.com/policy/2026/08/17/u-s-treasury-department-proposes-genius-act-stablecoin-rule