Treasury proposed GENIUS change forces US exchanges to audit foreign stablecoin or face delisting

According to CryptoSlate, newly proposed rules under the US stablecoin law, known as the GENIUS Act, would require US exchanges and digital-asset service providers to audit foreign stablecoin issuers or risk delisting. Platforms could continue offering certain foreign-issued payment stablecoins only if they perform reasonable due diligence to justify trusting an issuer's promise to comply with lawful US orders, such as freezing or seizing tokens.

CryptoSlate reported that the proposal bars reliance if a platform knows or should know that an issuer's compliance representation is false. Platforms must confirm that issuers are not subject to public GENIUS Act prohibitions and consider all reasonably available information.

The proposal outlines two timing points, with the Act's general regime expected to take effect on January 18, 2027, followed by stricter offering limits starting July 18, 2028. From that later date, covered providers could generally offer payment stablecoins only from permitted US issuers or foreign issuers meeting Section 18 requirements. Treasury has not approved specific named tokens. Public comments on the proposed standard remain open through October 19, 2026, as reported by CryptoSlate.