Treasury GENIUS Act proposal would require US exchanges to vet foreign stablecoins
US exchanges must audit foreign stablecoin issuers or delist their tokens under a new Treasury proposal.
The U.S. Treasury has put forward a rule under the GENIUS Act that would require domestic cryptocurrency exchanges to audit foreign-based stablecoin issuers before allowing their tokens to trade, or otherwise remove those tokens from their platforms.
The proposed standard says platforms may continue to support foreign stablecoins only after completing reasonable due diligence on the issuer. The measure is meant to ensure that non-U.S. stablecoins adhere to requirements comparable to those applied to domestic issuers.
The Treasury is accepting public comments on the draft until Oct. 19. The comment period gives stakeholders an opportunity to shape the final language before it takes effect.
Background
The GENIUS Act, introduced in Congress, aims to establish a federal framework for payment stablecoins. Treasury's proposed rule represents an early implementation step under that framework, with potential implications for exchanges and offshore stablecoin projects.