U.S. Treasury Department proposes GENIUS Act stablecoin rule

The Treasury Department’s proposal addresses foundational terms and jurisdictional questions in the GENIUS Act, according to CoinDesk. Congress completed the law last year, and the proposed rule is an administrative step toward putting its framework into operation.

The rule is relevant to stablecoin issuers, financial institutions, crypto platforms and the regulators responsible for supervising activity covered by the law. Its treatment of definitions and jurisdiction will help determine which entities fall inside the regime and which authorities oversee them.

The proposal will now face review and likely public scrutiny before the framework is finalized. Key open issues include whether the final rule changes the scope of covered activity, how responsibilities are divided across jurisdictions, and what compliance requirements follow from the definitions Treasury adopts.