The U.S. Department of the Treasury announced on Apr. 1 a notice of proposed rulemaking (NPRM) seeking public comment regarding its implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This NPRM marks the first regulation that Treasury has proposed under the GENIUS Act.
The proposal is significant because it addresses how payment stablecoin issuers with a consolidated total outstanding issuance of not more than $10 billion may choose to be regulated at the state level, as long as those state-level regimes are substantially similar to federal requirements under the GENIUS Act.
According to Treasury, "the GENIUS Act directs Treasury to, through notice and comment rulemaking, establish broad-based principles for determining whether a state-level regulatory regime is substantially similar to the federal regulatory framework under the GENIUS Act." The department said this NPRM builds upon an advance notice issued last September that sought input on various issues related to implementing the law.
Members of the public are encouraged by Treasury to submit comments in response to this NPRM within 60 days after it appears in the Federal Register. All submitted comments will be made publicly available at www.regulations.gov.
The outcome of this process could influence how both federal and state governments oversee stablecoin issuers in coming years, potentially affecting innovation and consumer protection standards across digital asset markets.
