Crypto Council Urges US Treasury to Clarify GENIUS Act Stablecoin Rules

Highlights:

• The Crypto Council has asked the US Treasury to clarify stablecoin rules under the GENIUS Act.
• CCI wants foreign stablecoin issuers to handle compliance instead of placing extra responsibilities on crypto exchanges.
• The group also seeks temporary rules for foreign issuers and clearer guidance on cross-border stablecoin payments.

The Crypto Council for Innovation (CCI) has asked the US Treasury to clarify how foreign stablecoin issuers and crypto platforms must follow the GENIUS Act. The industry group supports the proposed rules but says some requirements could make it harder for regulated payment stablecoins to reach US customers.

In an October 19 comment letter, CCI outlined changes to Treasury’s plan for implementing Section 3 of the law. The provision sets limits on who can issue, offer, or sell payment stablecoins in the United States. CCI also shared its recommendations in an October 20 post on X.

1/ Today, CCI filed comments with @USTreasury on its proposed rule to implement Section 3 of the GENIUS Act. Our key points 🧵 pic.twitter.com/4h4kBcUnrt

— Crypto Council for Innovation (@crypto_council) October 20, 2026

CCI Wants Foreign Stablecoin Issuers to Carry Main Compliance Responsibility

Under the GENIUS Act, payment stablecoins are digital tokens designed to maintain a fixed monetary value and used for payments. Issuers must meet requirements covering reserves, redemptions, and regulatory supervision. The law also provides a route for approved foreign issuers to serve US customers.

CCI argues that foreign issuers should prove they meet those conditions. It says the Treasury proposal could instead put too much pressure on digital asset service providers (DASPs), such as exchanges, to verify each issuer’s compliance.

Rather than having exchanges independently assess an issuer’s technology or ability to comply with legal orders, CCI wants them to check official registration records and government notices. Platforms would still need to take action if they have direct information that an issuer does not meet the rules.

CCI Seeks Transition Period for Foreign Stablecoins

CCI also asked Treasury to introduce temporary arrangements while it reviews foreign stablecoin regulations. The group warned that without such measures, US platforms could lose access to otherwise regulated foreign-issued stablecoins while government approvals remain pending. 

The letter says Treasury could start reviewing foreign regulatory regimes on January 18, 2027, with a statutory review period of 210 days. CCI urged the department to prioritize countries that already have established stablecoin frameworks and work toward mutual regulatory agreements.

Separately, CCI backed Treasury’s proposed implementation dates. One restriction on digital asset providers is scheduled for July 18, 2028, while another is tied to the GENIUS Act’s effective date, set for January 18, 2027, or earlier if final implementing regulations trigger that date.

Treasury Asked to Clarify Stablecoin Issuance and Cross-Border Payments

The council wants a clearer definition of when a stablecoin is officially issued. It argues that internal wallet transfers, advance token creation, and certain cross-chain movements should not count as new issuance when they create no new redemption obligation.

CCI also supports allowing affiliated companies in different countries to issue an interchangeable stablecoin under the same brand, provided the appropriate regulated entity remains responsible for redemption.

The council also wants Treasury to distinguish payment stablecoins from ordinary bank deposits. It says products should not escape stablecoin oversight simply because they are redeemable through deposit-like claims. At the same time, a normal bank deposit should not be treated as a separate digital payment token.

On enforcement, the group urged equal treatment of foreign and US crypto firms. It wants clear penalties for overseas platforms that knowingly break rules when serving US customers, while protecting companies that reasonably try to block prohibited access. The recommendations are requests for changes to Treasury’s proposed regulations, not rules that have already taken effect.