GENIUS Act Update: The Stablecoin Rules and Dates That Matter Now (2026)
The GENIUS Act takes effect no later than 18 January 2027, and Treasury has now defined who counts as issuing or selling a stablecoin in the US. The dates, the exemptions, and what it means for USDT.
Quick answer: The GENIUS Act, the US stablecoin law signed in July 2025, takes effect no later than 18 January 2027. In August 2026 Treasury proposed the rules that define who counts as issuing or selling a stablecoin in the US, and confirmed that from 18 July 2028 US platforms may only offer stablecoins from permitted issuers. Self-custody wallets and person-to-person transfers stay outside the law.
Key takeaways
- The GENIUS Act takes effect on the earlier of 18 January 2027 or 120 days after final rules.
- Treasury's 17 August 2026 proposal defines issuing, offering and selling a payment stablecoin in the United States, with comments open into mid-October.
- From 18 July 2028, US digital asset service providers may only offer stablecoins from permitted issuers.
- The Act leaves out self-custody wallet transactions and direct transfers between two individuals.
- Most of the other building blocks, from licensing to anti-money-laundering rules, were proposed between late 2025 and spring 2026. Final rules are still pending.
A year after the GENIUS Act became law, the part that decides how it actually works is being written now. The headline dates are no longer vague, and the August 2026 Treasury proposal filled in the most practical question of all: what counts as issuing or selling a stablecoin in the United States. Here is where things stand and what it means if you hold or use dollar stablecoins.
What is the GENIUS Act, in one paragraph?
The GENIUS Act is the federal framework for payment stablecoins in the United States, signed into law on 18 July 2025 (full text on Congress.gov). It says who may issue a dollar stablecoin in the US, requires reserves that fully back the tokens, brings issuers under federal or state supervision, and limits which stablecoins US platforms may offer. It does not ban holding stablecoins, and it does not reach every use of them.
When does the GENIUS Act take effect?
The effective date is the earlier of two points: 18 January 2027, or 120 days after the regulators publish final implementing rules. Two later dates matter just as much, because they are when the restrictions bite.
| Date | What happens |
|---|---|
| 18 July 2025 | GENIUS Act signed into law |
| 19 September 2025 | Treasury advance notice asking for public input |
| December 2025 to April 2026 | FDIC, NCUA, OCC, Treasury and FinCEN/OFAC publish proposals on licensing, prudential standards, state regimes and anti-money-laundering |
| 17 August 2026 | Treasury proposes rules for Section 3: issuance, offer and sale in the US |
| Mid-October 2026 | Comment period on the August proposal closes (60 days after 18 August publication) |
| 18 January 2027 at the latest | Act takes effect; issuing a payment stablecoin in the US without a licence becomes unlawful |
| 18 July 2028 | US digital asset service providers may only offer stablecoins from permitted issuers |
Sources: Treasury, Thomson Reuters, Morgan Lewis tracker of the proposals.
What did Treasury propose in August 2026?
On 17 August 2026 Treasury released a notice of proposed rulemaking for Section 3 of the Act, published in the Federal Register on 18 August. Its job is definitional, and definitions are where compliance lives.
- Issue. The first transfer of a stablecoin by its issuer that gives another person the right to use, transfer or redeem it.
- Issuer. The person obligated to redeem the stablecoin for a fixed monetary value.
- In the United States. For individuals, presence in the US unless temporary; for businesses, being organised under US law or having the principal place of business in the US.
- Foreign issuer safe harbor. A foreign issuer avoids an issuance violation if it is not located in the US, reasonably believes recipients are not in the US, has policies against US issuance, and does not target US persons in its advertising.
- Sales by platforms. From 18 July 2028, digital asset service providers serving the US may only offer stablecoins created by permitted issuers.
Treasury Secretary Scott Bessent described the goal as providing the regulatory certainty businesses need. The details above are summarised from the Treasury release, Thomson Reuters and Duane Morris.
What stays outside the GENIUS Act?
This is the part most holders care about. The Act's text says it does not regulate a transaction through a software or hardware wallet that lets an individual keep custody of their own digital assets, and it does not regulate the direct transfer of digital assets between two individuals acting on their own behalf for lawful purposes without an intermediary (Congress.gov). Treasury's proposal carries these safe harbors forward.
In plain terms: the law is aimed at issuers and at the businesses that sell stablecoins to Americans. Holding tokens in your own wallet and sending them to another person are not what it restricts.
What are the core rules for issuers?
| Area | What the framework requires or proposes |
|---|---|
| Licensing | Issuing in the US requires approval as a permitted issuer under a federal regime or a qualifying state regime |
| Reserves | Stablecoins must be fully backed by reserves, with high-quality liquid assets such as cash and short-term US Treasuries |
| State issuers | States may license issuers with not more than $10 billion in outstanding issuance |
| Yield | FDIC and OCC proposals prohibit paying yield or interest to a holder solely for holding the stablecoin |
| Financial crime | FinCEN and OFAC proposed anti-money-laundering and sanctions programme requirements in April 2026 |
Sources: OCC proposal, FDIC proposal, Morgan Lewis.
What does this mean for USDT and Tether?
Tether has chosen a two-track approach. For the US market it launched USAT in January 2026, a US-regulated dollar stablecoin issued by Anchorage Digital Bank, a federally chartered bank, with Cantor Fitzgerald as reserve custodian (Yahoo Finance). USDT keeps serving users worldwide and, according to Tether, is progressing towards GENIUS Act compliance through the foreign issuer pathway.
The practical takeaway for a holder outside the US is that the GENIUS Act is not a switch that turns USDT off. It shapes what US platforms may list from 2028 and how global issuers structure reserves and products. For users in other countries, local rules remain the ones that apply.
What should stablecoin users do now?
- If you are outside the US: nothing changes today. Follow your own country's rules and keep an eye on which products your platforms offer.
- If you are in the US: expect changes at the platform level, mostly around 2028, rather than in what you can hold in your own wallet.
- Everyone: prefer self-custody for money you intend to keep, know which network your stablecoin runs on, and treat any product that promises yield just for holding a stablecoin with care, since regulators are moving to restrict it.
Fizen is a self-custody super app: you hold your own USDT and use it for a travel eSIM, QR payments in Vietnam and the Philippines, and sending money, without handing your balance to a custodian. Fizen is backed by an investment from Tether and is not offered to US Persons.
Frequently asked questions
What is the GENIUS Act?
The GENIUS Act is the US federal law for payment stablecoins, signed on 18 July 2025. It sets who may issue a dollar stablecoin in the US, how reserves must be held, and which stablecoins US platforms may offer.
When does the GENIUS Act take effect?
On the earlier of 18 January 2027 or 120 days after regulators publish final rules. From that date it becomes unlawful to issue a payment stablecoin in the US without a federal or state licence.
What did Treasury propose in August 2026?
On 17 August 2026 Treasury proposed rules for Section 3 of the Act. They define what it means to issue, offer or sell a payment stablecoin in the United States, set a safe harbor for foreign issuers that do not target US users, and confirm that from 18 July 2028 US digital asset service providers may only offer stablecoins from permitted issuers.
Can Americans still hold USDT after the GENIUS Act?
The Act restricts issuers and US service providers, not individuals holding tokens. It expressly leaves out transactions through a self-custody wallet and direct transfers between two individuals acting for themselves. What changes is which stablecoins US platforms may list from July 2028.
Does the GENIUS Act affect people outside the United States?
Not directly. It is a US law about issuing and selling stablecoins in the US. Users abroad are governed by their own country's rules, although US rules influence how global issuers structure reserves and products.
What is Tether doing about the GENIUS Act?
Tether runs two tracks. USAT, a US-regulated stablecoin issued by Anchorage Digital Bank, launched in January 2026 for the US market. USDT continues to serve users globally and, according to Tether, is progressing towards GENIUS Act compliance through the foreign issuer pathway.
Can stablecoin issuers pay interest under the GENIUS Act?
Regulators' proposals from the FDIC and OCC prohibit issuers from paying yield or interest to a holder solely for holding the stablecoin.
When can I comment on the Treasury proposal?
The comment period runs for 60 days after publication in the Federal Register on 18 August 2026, so into mid-October 2026. Comments are submitted through regulations.gov.
Hold your own dollars, use them anywhere
Fizen is a self-custody super app backed by an investment from Tether. Keep USDT in a wallet you control and use it for eSIM in 150+ countries, QR payments in Vietnam and the Philippines, and sending money. Not offered to US Persons.
Terms and conditions
- Information only. This article is general information about law and regulation. It is not legal, financial, tax or investment advice.
- Proposals are not final. Several rules described here are proposals and may change before they are finalised. Dates and requirements should be checked against official sources.
- No affiliation. Fizen is not affiliated with the US government agencies, banks or companies named here. Tether is an investor in Fizen; statements about Tether's plans are attributed to public reporting.
- Availability. Fizen is not offered to US Persons. Product availability varies by country. QR Pay is for foreigners and travelers in supported markets.
- Self-custody. You control your keys. No one, including Fizen, can recover a wallet if you lose your seed phrase.
- Full terms. Master Terms of Use, Privacy Policy and Disclaimer on the Fizen site.
Sources
- US Treasury: Treasury seeks public comment on GENIUS Act proposed rulemaking (17 Aug 2026)
- Federal Register: GENIUS Act regulations on payment stablecoin issuance, offer and sale (18 Aug 2026)
- Thomson Reuters: Treasury proposes rules defining stablecoin issuance and sales in the US
- Morgan Lewis: GENIUS Act implementation, key proposals and what comes next
- OCC Bulletin 2026-3: GENIUS Act NPRM
- FDIC: proposal to implement GENIUS Act requirements
- Congress.gov: GENIUS Act text
- Yahoo Finance: Tether launches US-regulated USAT
