The U.S. Department of the Treasury has officially begun implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, issuing its first Notice of Proposed Rulemaking (NPRM) and opening a 60-day public comment period.
Page 87 an offer It outlines how the Treasury Department will determine whether state-level stablecoin regulatory regimes are “substantially similar” to the federal framework — a key threshold that allows small issuers to remain under state supervision.
Under the GENIUS Act, stablecoin issuers have less than $10 billion in outstanding supply can choose For regulation at the state level, provided that such systems meet or exceed federal standards. The proposed rule establishes general principles to guide this decision, leaving flexibility to states in areas such as licensing, oversight, and enforcement.
According to the document, the Treasury clearly distinguishes between “standardized requirements” — such as reserve support and anti-money laundering compliance — and “state-calibrated requirements,” over which local regulators retain discretion, including capital and risk management standards.
Notably, the proposal largely anchors the federal standard with rules and regulations Explanations issued By the Office of the Comptroller of the Currency, indicating its central role in supervising non-bank stablecoin issuers that move into federal supervision after crossing the $10 billion threshold.
The rule also clarifies that state frameworks may override federal requirements, as long as they do not conflict with federal law or undermine overall comparability.
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The NPRM represents the Treasury Department’s first formal step in translating the GENIUS Act — which was passed in July 2025 — into an operational regulatory system for stablecoin payments, with final rules expected after the public comment period ends.
State regulations would also be prohibited from weakening basic disclosure standards, with issuers required to publish reserve composition reports at least monthly – consistent with federal frequency requirements.
Naming restrictions will apply similarly across both frameworks, preventing state-regulated issuers from using prohibited terms in stablecoin branding.
The proposal emphasizes that federal law remains the norm, noting that any future legislation passed by Congress regulating stablecoin issuers will automatically apply to state-regulated companies unless explicitly stated otherwise.
2025 corridor The GENIUS Act represents a turning point in US cryptocurrency policy, creating the first federal framework for stablecoins and requiring full back-up, anti-money laundering compliance, and regular disclosures.
The law is widely seen as legitimizing dollar-backed stablecoins while strengthening US monetary dominance.
Since then, attention has turned to legislation related to implementation and follow-up. Treasury reports issued under the GENIUS Act expand oversight tools, including measures targeting illicit financing and cryptocurrency mixers.
At the same time, Disputes between banks and Crypto companiesEspecially regarding whether stablecoins can provide a return, this has slowed broader market structure efforts.
Meanwhile, Congress is introducing supplemental bills such as the Clarity Act to define the jurisdiction of the SEC and CFTC, signaling a broader push toward a comprehensive regulatory framework for digital assets.
