The US Treasury Department proposed new rules on Monday detailing how stablecoin issuers and digital asset service providers would comply with key provisions of the GENIUS Act. 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. The GENIUS Act, signed into law in July 2025, requires payment stablecoins to maintain reserves backing their outstanding tokens on a one-to-one basis using eligible assets including cash, deposits and short-term Treasury securities. Beginning July 18, 2028, digital asset service providers would generally be prohibited from offering or selling stablecoins to people located in the US unless they were issued by a permitted payment stablecoin issuer or a qualifying foreign issuer. 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.
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