The U.S. Treasury has released the first major proposal to implement the GENIUS Act, setting federal definitions for who counts as a US stablecoin issuer and which rules they must follow.

The proposal treats payment stablecoins as a new category rather than securities, arguing that forcing traditional investment rules onto them could undermine their use for payments and cross-border settlement. Treasury Secretary Scott Bessent framed it as delivering regulatory certainty and keeping the US the crypto capital of the world. The public has 60 days to comment before a final rule.

The industry will watch closely how the rules handle foreign issuers such as Tether. The law's one-year implementation deadline already lapsed last month, and its effective date is set for January 18, with banking and markets regulators still to add their own rules.