Treasury seeks public comment on framework linking state and federal government Stable coin Rules
The U.S. Department of the Treasury issued a Notice of Proposed Rulemaking (NPRM) on April 1, seeking public comment on stable coin regulation. The federal agency is advancing implementation of Guiding and Establishing National Innovation for the United States. Stablecoins (GENIUS), which focuses on how state-level regulatory regimes compare to federal standards. The announcement stated:
“The NPRM is the first regulation proposed by Treasury to implement the GENIUS Act.”
“The GENIUS Act directs Treasury to establish, through notice and comment rules, general principles for determining whether a state-level regulatory regime is substantially similar to the federal regulatory framework under the GENIUS Act,” Treasury added.
The Notice of Proposed Rulemaking states that states may regulate payment stable coin issuers with total issuance of less than $10 billion if their frameworks comply with federal requirements. It introduces general principles for determining comparability between state and federal oversight. The framework distinguishes between uniform requirements and areas where states retain discretion, including capital standards and supervisory approaches. It also clarifies that state plans must remain consistent with federal legal requirements applied to authorized issuers.
State and federal supervision rules Stable coin Standards
The document explains that the GENIUS Act, enacted on July 18, 2025, establishes a comprehensive payment system stable coins. It defines these assets as digital instruments designed for payments with fixed repayment expectations tied to monetary value. The proposal describes how federal regulators, including the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC), supervise issuers, while allowing qualified state issuers to operate under approved state plans.
Public comments must be submitted within 60 days of publication in the Federal Register. Treasury is seeking feedback from industry participants, regulators and other stakeholders. Submissions will be publicly available through the federal regulatory portal, promoting transparency as the agency moves to finalize stable coin regulations.
FAQs 🧭
- What does the GENIUS Act mean for stable coin transmitters?
It creates a federal framework while still allowing state-regulated issuers to operate. - How do states and the federal government stable coin do regulations interact?
States can regulate small emitters if their rules are substantially similar to federal standards. - Which agencies supervise stable coin issuers covered by the proposal?
The Federal Reserve, FDIC, NCUA, and OCC share federal oversight responsibilities. - Why is Treasury seeking public comment on stable coins?
The comments will shape the final rules which will have a direct impact on market structure and investor confidence.
