Stablecoin issuers face an operational test before 2027, Telcoin president says

US stablecoin issuers have entered a five-month preparation window before the GENIUS Act’s expected Jan. 18, 2027, effective date, which places licensing and operating controls at the center of market access. Summary Stablecoin issuers will generally need a federal or state license from Jan. 18, 2027. Patrick Gerhart said integrated compliance systems will present the hardest licensing challenge. US platforms face separate restrictions on distributing unapproved stablecoins from July 18, 2028. Treasury is considering customer and location checks that could affect offshore issuers and platforms. The US Treasury proposed new definitions on Aug. 17 covering when a company issues a payment stablecoin in the United States and when a digital asset platform offers one to a US customer. Although the proposal clarifies which activities fall under the law, Patrick Gerhart, president of Telcoin Digital Asset Bank, told crypto.news that securing a license will require issuers to prove their compliance, reserves, and technology systems work together under daily operating conditions. “The hardest part will be building the operating infrastructure behind the license,” Gerhart said. “A stablecoin ...