Starting January 18, 2027, the doors for payment stablecoin issuers in the United States will be firmly shut if they do not hold a license. This strict rule is the result of the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins), a law signed in July 2025 that is set to reshape the crypto industry landscape in the country.
Issuers can no longer operate freely. They are required to obtain an official license, both at the federal level and from the relevant state. As an initial step toward implementation, the US Treasury Department issued a notice of proposed rulemaking or a draft policy proposal.
They have opened a 60-day public comment period, starting from when the proposal is published in the Federal Register. “We welcome input from stakeholders,” said Treasury Secretary Scott Bessent, inviting crypto industry participants to voice their opinions.
The impression of government readiness was also amplified on social media. The @WatcherGuru account on X, in a post that garnered 4,871 likes, quoted Bessent stating that the US is “moving fast” in implementing the GENIUS Act framework.
But this claim of moving fast actually contradicts the dates on the regulators’ calendars.
Missed Deadlines
The US Treasury is not working alone in drafting these rules. Three other key US financial agencies - OCC, FDIC, and the Federal Reserve Board - have also released their respective proposed rules.
Facts on the ground show that all four agencies missed a crucial 120-day deadline that fell in July 2026. This deadline was originally set to ensure the finalization of the regulation was completed well before the licensing execution begins in January 2027.
This delay is not just a typical administrative issue. Given that the finalization deadline has passed, there is a significant risk that the GENIUS Act will become legally binding in early 2027 while its technical operational guidelines remain unclear. Market participants potentially face an operational ban without knowing for sure what kind of licensing standards will be required of them.
Aligning Rules Across Continents
While the draft of domestic regulations is still in progress, US officials have already begun calibrating the direction of this policy on the global stage. Last July, a US delegation flew to London to meet with UK representatives through the UK-US Financial Regulatory Working Group forum.
The central agenda of this meeting was to discuss the implementation of the GENIUS Act and align both countries’ approaches to regulating stablecoins. This step shows the US’s effort to align its licensing rules with the framework in European financial hubs.
For the crypto industry, the newly opened 60-day comment period is a narrow window to ensure that this draft rule does not turn into a thick wall against innovation. Lawmakers have already passed the bill; now, industry players are racing against time to ensure the regulation is ultimately feasible to run.
Reported by Cointelegraph.
Read also: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
