# Treasury Closes Public Comments on GENIUS Act Stablecoin Rules as Regulatory Deadlines Approach

- URL: https://stocks.freetheai.org/news/treasury-closes-public-comments-on-genius-act-stablecoin-rules-as-regulatory-23d656
- Published: 2026-10-19T17:11:02Z
- Category: regulation; sentiment: neutral; impact: high
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The U.S. Department of the Treasury has concluded its public comment window for proposed regulations covering the issuance, offer, and sale of payment stablecoins under the GENIUS Act. The public feedback period addressed 87 regulatory questions spanning issuer licensing, reserve requirements, foreign issuer access, and digital asset platform due diligence.

Although the GENIUS Act was signed into law in July 2025, federal regulators missed a statutory deadline to finalize implementing rules by July 2026. Consequently, a statutory backstop sets January 18, 2027, as the baseline effective date. Issuers with market capitalizations above $10 billion, such as Circle's USDC and Tether's USDT, face mandatory transitions to federal oversight. Circle has applied for an OCC trust bank license, whereas Tether created USAT through Anchorage Digital Bank, N.A., because USDT lacks a foreign comparability finding from Treasury.

The Office of the Comptroller of the Currency plans to publish its final rule in November 2026, which would trigger a 120-day window and extend the effective date to approximately March 2027. However, crypto exchanges must establish formal due diligence on foreign stablecoins by January 18, 2027, to avoid severe penalties.

## Key points

- The Treasury public comment window closed on proposed GENIUS Act payment stablecoin rules addressing 87 key policy questions.
- Because federal regulators missed a July 2026 rule deadline, a statutory backstop sets the effective date for January 18, 2027.
- Stablecoin issuers with market caps over $10 billion must transition to federal supervision under the Office of the Comptroller of the Currency.
- Digital asset exchanges face a January 18, 2027 deadline to establish due diligence procedures for listing foreign-issued stablecoins like USDT.

## Questions and answers

### What is the GENIUS Act effective date for stablecoins?

The default statutory effective date is January 18, 2027. However, if the Office of the Comptroller of the Currency publishes its final rule in November 2026, a 120-day implementation clock will shift the effective date to approximately March 2027.

### How does the GENIUS Act affect USDT and USDC?

Circle's USDC aligns with federal reserve standards and has applied for an OCC license. Tether's USDT is a foreign issuer lacking U.S. comparability status, prompting Tether to launch USAT through Anchorage Digital Bank while exchanges prepare due diligence reviews for USDT.

### What happens to crypto exchanges listing foreign stablecoins?

Starting January 18, 2027, exchanges must have a documented due diligence basis showing they reasonably believe a foreign stablecoin issuer can comply with U.S. lawful orders, or face fines of up to $1 million per violation and up to five years in prison.