U.S. Regulators Continue Crafting Stablecoin Rules a Year After GENIUS Act

One year after the GENIUS Act became law, U.S. regulators have yet to finalize the detailed rules governing payment stablecoins. While the act set a federal framework, agencies are still working on the specifics that will determine how stablecoin issuers must operate.

The GENIUS Act, passed as Public Law 119-27, outlines the broad legal boundaries for payment stablecoins. However, turning a statute into an enforceable regulatory regime requires agencies to draft precise rules, definitions, and supervisory procedures. This ongoing process explains why rulemaking remains active despite the law’s effective date.

Outstanding Regulatory Issues

Key areas still under discussion include compliance with anti-money laundering (AML) and sanctions requirements. Organizations such as the Bank Policy Institute and The Clearing House have submitted formal comments addressing these concerns, signaling that regulators are gathering input before issuing final rules. U.S. regulators have missed the original one-year deadline to complete stablecoin regulations mandated by the GENIUS Act.

Multiple Agencies Involved in Oversight

Stablecoin regulation in the U.S. does not rest with a single agency. The Treasury Department has been particularly active, releasing related announcements through its press office. Given the close relationship between payment stablecoins and the banking system, oversight areas likely include reserve backing, redemption processes, and prudential supervision. The extent of banking oversight remains a subject of debate.

As the framework continues to evolve, the regulatory environment for stablecoins in the U.S. is far from settled. This ongoing development follows similar efforts by other countries to tighten crypto rules, such as the UK FCA and central banks adjusting stablecoin limits.

For background, see related coverage on US Regulators Fail to Meet GENIUS Act Rulemaking Deadline for Stablecoins and GENIUS Act Enforces Stablecoin Compliance by Mid-2028 Deadline.

This article is for informational purposes and does not constitute financial advice.