The US Treasury Department has proposed licensing rules for payment stablecoin issuers under Section 3 of the GENIUS Act, opening a public comment period that runs until October 19, 2026. The rulemaking was issued on August 18 and published on August 21. Under the proposal, issuers would need a federal or state license beginning January 18, 2027, while digital asset service providers would be prohibited from offering unlicensed stablecoins to US persons from July 18, 2028. The proposal is not yet law and could change after public feedback. The framework could bring stablecoin oversight closer to the banking and payments sectors, while the federal and state licensing paths may create both choice and regulatory complexity. The later service-provider deadline could push exchanges, wallets, payment apps, DeFi front ends, custody platforms and other intermediaries toward licensed stablecoins, potentially increasing consolidation as smaller issuers face higher compliance costs. Issuers, exchanges, banks, fintechs, consumer groups and crypto policy organizations are expected to weigh in on definitions, deadlines, licensing standards, reserve requirements, service-provider obligations and the division between state and federal oversight.