Regulatory Roadmap for the GENIUS Act: Treasury Department's New Moves

The U.S. Treasury Department is accelerating the rulemaking process for the GENIUS Act, which took effect in July 2025.

Fresh Regulatory Blueprint: The GENIUS Act Timeline

Under the law, 120 days were required to finalize regulations; however, this deadline was missed as of July 2026. Consequently, the act may become effective 18 months later, i.e., on January 18, 2027.

Inter‑Agency Coordination and Delays

■US Treasury issued a proposed rule and opened a 60‑day public comment period.

■OCC, FDIC, and the Federal Reserve Board each released draft regulations in 2026 but failed to align on a unified schedule.

■Treasury Secretary Scott Bessent invited industry stakeholders to provide input, emphasizing the need for "regulatory certainty that enables innovation and growth."

Market Participants' Expectations and Risks

■Payment stablecoin issuers will be barred from operating in the U.S. without a federal or state license.

■Investors are closely monitoring ETF flows and UTXO movements amid regulatory ambiguity.

■Institutional funds may face cost and timing pressures due to new licensing requirements.

Global Competition and U.S. Leadership

■The UK‑US Financial Regulatory Working Group convened in London to strengthen bilateral cooperation.

■While the United Kingdom is moving swiftly on stablecoin regulation, the U.S. delay could create a competitive disadvantage for the sector.

Markets may react in two ways: a short‑term uncertainty premium could rise, but once a clear framework emerges, it will likely redirect capital back into the stablecoin ecosystem. Tracking miner wallet flows and institutional ETF entries will provide a measurable data set to gauge the regulation's impact.