US Treasury proposes rules for stablecoin issuance and sales under GENIUS Act

The US Treasury Department proposed new rules Monday detailing how stablecoin issuers and digital asset service providers would comply with key provisions of the GENIUS Act. The Notice of Proposed Rulemaking focuses on Section 3 of the law, defining when a payment stablecoin is considered issued in the United States and when a platform is considered to offer or sell a stablecoin to someone in the country. The proposal is scheduled for publication in the Federal Register on Aug. 18, with comments accepted for 60 days. Under the proposal, a stablecoin would generally be considered issued in the US if the issuer is located in the country at the time of issuance or if the stablecoin is issued to someone located in the US. For individuals, Treasury would generally look at physical presence, while US incorporation or a principal place of business in the country would determine the location of companies. Foreign issuers could avoid being treated as issuing in the US if they reasonably believe recipients are outside the country, maintain controls designed to prevent issuance to people located in the US, and do not target US users through advertising or solicitation. The GENIUS Act is expec...