Agencies missed July rulemaking deadline; enforcement set for Jan 2027. Circle, Paxos face uncertainty as BlackRock, JPMorgan launch reserve funds. Senator Lummis urges CLARITY Act.
One year after President Donald Trump signed the GENIUS Act, regulators still have not finished the rules that give the law its teeth. The July 18 deadline for final rulemaking passed with most major standards still in draft form.
The OCC, Federal Reserve, FDIC and Treasury continue to craft rules for issuer reserves and capital. Standards for liquidity and custody are still under review. Risk management rules remain in progress. Public comment periods are still open. Customer identification proposals close August 21. The FDIC's anti-money laundering consultation closes August 4.
Without final rules, issuers like Circle and Paxos operate under statutory baselines and interim guidance. Reserve eligibility and liquidity protocols are not yet settled. Custody frameworks also remain pending. The stablecoin sector has grown to about $310 billion. The patchwork of regulation complicates capital planning and redemption processes.
The act takes full effect January 18, 2027. Congress has less than six months to resolve outstanding issues. Senator Cynthia Lummis called the GENIUS Act "an important first step" and urged lawmakers to pass the CLARITY Act, which would further solidify U.S. leadership in digital assets.
Even without final rules, institutions have moved. BlackRock and JPMorgan launched stablecoin reserve funds. Visa introduced a platform serving 15,000 institutions. The first bank-issued on-chain dollar entered the market. A recent report highlighted how Visa, BlackRock stablecoin push tops crypto KOL sentiment. Banks are still assessing their options for stablecoin strategies as they wait for final guidance.
The FDIC's anti-money laundering consultation closes August 4. The customer identification comment period ends August 21. The January 18 enforcement date is fixed.
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