U.S. Treasury Opens Rulemaking for Stablecoin-Focused GENIUS Act
According to the U.S. Treasury, the proposal would let stablecoin issuers with under $10 billion outstanding choose state regulation if state regimes are deemed substantially similar to the federal framework.
Summary
The U.S. Treasury published a notice of proposed rulemaking under the GENIUS Act on April 1 and requested public comment on whether state stablecoin regulatory regimes are substantially similar to the federal framework. The proposal would allow stablecoin issuers with less than $10 billion in outstanding issuance to opt for state regulation rather than federal oversight, subject to that equivalency assessment. This marks an early implementation step for the act’s stablecoin regulatory framework.
Terms & Concepts
- Stablecoin: A cryptocurrency designed to maintain a stable value, often by being linked to a fiat currency such as the U.S. dollar.
- Rulemaking: The formal process through which a government agency drafts and finalizes regulations to implement a law.
- GENIUS Act: A U.S. legislative framework referenced here as the basis for Treasury’s proposed rules governing stablecoin oversight.