Treasury guidance could curb foreign stablecoins on US exchanges

The U.S. Treasury published draft guidance implementing parts of the GENIUS Act that would change which stablecoins crypto exchanges may offer to U.S. customers. The proposal extends requirements to issuers based outside the United States and would require exchanges and other service providers to check issuer compliance.

Under the draft guidance, foreign stablecoin issuers seeking access to the U.S. market must demonstrate they can halt, reverse, freeze, seize or burn tokens when ordered by U.S. authorities. The Treasury proposes that exchanges perform their own verification of issuer capabilities rather than relying solely on issuer claims. The guidance treats a transaction as issuing in the U.S. if either the issuer or the recipient is located in the country.

Foreign issuers could qualify to serve U.S. customers if the Treasury deems their home regulatory regime comparable to U.S. standards and if they register with the Office of the Comptroller of the Currency. The proposal says issuers that intend to exclude U.S. users would need technical controls to block tokens from reaching American customers.

Timing for the rules is staggered. The GENIUS Act itself is expected to take effect on January 18, 2027. Restrictions that apply to service providers would begin 18 months later, on July 18, 2028. The Treasury will publish the guidance in the Federal Register and has given the public 60 days to submit comments after publication.

From July 18, 2028, service providers would be barred from offering stablecoins to U.S. customers unless the issuer is authorized under the GENIUS Act framework. Listing a stablecoin would not automatically make an exchange the issuer, but platforms, market makers and other intermediaries could face liability if they assist newly created, unauthorized stablecoins in reaching buyers. The proposal identifies activities such as advertising a stablecoin to Americans, answering purchase requests from U.S. users, or helping customers bypass location checks as offering the token in the United States.

The guidance counts certain token distributions as issuance. Airdrops would be treated as issuance even when recipients do not pay for the tokens. The Treasury would allow limited exemptions for direct transfers between individuals and for some transactions conducted through self-custody software or hardware wallets, and it said those exemptions could change during the comment process.

The proposal would require exchanges to strengthen due diligence on issuer controls and legal compliance and would set new limits on which tokens can be listed for U.S. customers after the July 18, 2028 effective date. The Treasury emphasized that definitions and exemptions in the draft guidance are subject to change through the formal rulemaking process.