U.S. regulators failed to issue final rules for implementing the federal stablecoin framework by July 18 local time, the one-year deadline for writing regulations under the Genius Act.

The Block reported that as of the afternoon of July 18, rule proposals issued by the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corp (FDIC), the National Credit Union Administration (NCUA) and the Treasury Department were all still at the proposal stage. Rules by the Federal Reserve and anti-money laundering authorities are also incomplete, and some are undergoing public comment.

President Donald Trump signed the Genius Act, formally the Guiding and Establishing National Innovation for U.S. Stablecoins Act, on July 18 last year. The Genius Act is the first stand-alone federal crypto framework to pass Congress and includes rules on reserve, redemption, disclosure, licensing and supervisory requirements for issuers of payment stablecoins.

Article 13 of the law directs the OCC, the Fed, the FDIC, the NCUA, the Treasury Secretary and state regulators to prepare implementing rules within 1 year. It contains no provision for an automatic extension or for requirements to be deferred if the deadline is missed.

The OCC issued a draft implementing rule in March covering reserve assets, capital, liquidity, custody, risk management and reporting requirements. The FDIC issued a draft safety and soundness standard covering reserves, capital, redemption, custody and risk management. The NCUA issued a draft licensing rule in February and a draft operating and risk management rule in May. Public comment on the second draft rule closed a day before the deadline, making completion by July 18 impossible.

The Treasury Department's proposal on principles for state-level regulation is also unfinished. The proposal sets criteria for determining whether a state framework is substantially similar to the federal framework, and would keep issuers with outstanding issuance of $10 billion or less under state supervision.

Missing the deadline does not automatically delay the Genius Act's effective date. The effective date is the earlier of Jan. 18, 2027, and 120 days after regulators issue final rules.