The key deadline for implementing the GENIUS Act — the law regulating stablecoins in the U.S. — has been missed. As of July 18, none of the responsible agencies had issued final regulations, even though the law allowed exactly one year from the date of its signing for this process. This is a serious signal that the U.S. bureaucratic machine is failing to keep pace with the timeline set by lawmakers.
According to the provisions of the GENIUS Act, the Office of the Comptroller of the Currency (OCC), the Federal Reserve System (Fed), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Treasury Department were tasked with developing the rules. In practice, however, everything was limited to publishing drafts and opening windows for public comments. Final versions of the documents never appeared.
Still in Development: What Have Regulators Managed to Do?
In March, the OCC submitted a sweeping proposal to the Federal Register covering reserve assets, capital, liquidity, securities custody, and risk management for "stablecoin" issuers. In April, the FDIC put forward an initiative on prudential standards, including issues of deposit insurance for stablecoin reserves. The NCUA published possible licensing rules in February and a broader document on operational management in May. The comment period for the second package ended only on July 17.
The Treasury Department also has not completed work on principles for regulation at the state level. This document is supposed to determine when a state system is "substantially similar" to the federal regime, which is critical for market uniformity. At the end of June, the Fed, FinCEN, OCC, FDIC, and NCUA jointly issued a proposal on customer identification, requiring issuers to verify sources of funds. Comments on this are being accepted until August 21.
What's Next? Bureaucratic Deadlock and Market Risks
Based on the realities of U.S. bureaucracy, at least several of the proposed rules will not be adopted before the end of this year. Agencies need to consider numerous industry comments, a process that could drag on for months. The missed deadline itself does not postpone the effective date of the GENIUS Act, but it creates legal uncertainty.
According to the law, it takes effect either on January 18, 2027 (18 months after adoption), or 120 days after the publication of final rules. However, Congress did not provide for penalties for missing the deadline. This means regulators can drag out the process without consequences, which negatively impacts the business planning of issuers and investors.
Let me remind you that lawmakers simultaneously need to work on the CLARITY Act, which regulates stablecoin yields. In June, the American Bankers Association and 76 regional associations called on the Senate to clarify its provisions. I see this as a systemic problem: without clear and timely rules, the U.S. stablecoin market risks losing competitiveness against more flexible jurisdictions like Europe or the UAE. The delay is not just a bureaucratic failure, but a direct threat to the leadership of the American crypto industry.