US Treasury proposes restrictions on offshore stablecoin access

The US Treasury Department has proposed rules under the GENIUS Act that would restrict how offshore stablecoins are distributed to American customers. While the rules do not ban offshore tokens from circulating globally or moving between private wallets, they would prevent regulated digital asset service providers—including exchanges and custodians—from offering or selling certain payment stablecoins to US users unless the issuer meets specific permitted categories.

The implementation is structured in two stages. Starting January 18, 2027, companies will be prohibited from issuing payment stablecoins in the US without entering the GENIUS regime. Additionally, US service providers carrying foreign-issued tokens will face requirements regarding the issuer's commitment to obey lawful orders and reciprocal arrangements.

A broader restriction is set to take effect on July 18, 2028. From this date, covered providers will only be permitted to carry tokens from approved or qualifying foreign issuers. This could impact major assets like Tether’s USDT, as American exchanges may be unable to list them even if the tokens continue to function on-chain.