US Treasury proposes rules requiring exchanges to audit foreign stablecoins or risk delisting

The US Treasury has proposed new rules under the GENIUS Act that would require US crypto exchanges and service providers to perform due diligence on foreign-issued stablecoins before offering them to customers. Stablecoins are digital currencies designed to maintain a steady value, often tied to traditional assets like the US dollar.

If platforms cannot justify trusting a foreign issuer’s compliance with US laws—such as the ability to freeze or seize tokens when ordered—they may face delisting those assets. The proposal does not approve or ban any specific stablecoins, including USDT.

Two-phase rollout for foreign stablecoin access

The rules introduce a two-step timeline. The first phase, expected to start on January 18, 2027, requires platforms to conduct reasonable due diligence on foreign issuers. This includes verifying that the issuer is not publicly prohibited under the GENIUS Act and assessing all available information about its compliance.

A stricter second phase begins on July 18, 2028. From this date, US platforms may only offer foreign-issued payment stablecoins if the issuer meets specific conditions. These include supervision under a regime the Treasury deems comparable to US standards, registration with the Office of the Comptroller of the Currency, and maintaining sufficient reserves at a US financial institution for liquidity. The issuer’s jurisdiction must also not be under comprehensive US sanctions or designated as a primary money laundering concern.

Exemptions and open questions

The proposal includes exemptions, such as direct transfers between individuals without intermediaries, transfers between a user’s own US and foreign accounts under the same parent company, and transactions using personal wallets for self-custody.

The Treasury is still deciding what counts as adequate due diligence. It is seeking public comments on whether platforms should be required to obtain written or regularly updated representations from issuers, retain records, review smart contracts, or verify functions like freezing or burning tokens. The comment period closes on October 19, 2026.

Until the rules are finalized, the availability of foreign stablecoins in the US will depend on compliance evidence rather than a published list of approved tokens.

Sources

• CryptoSlate