Treasury Invites Public Feedback on Framework Bridging State and Federal Stablecoin Rules
The U.S. Department of the Treasury issued a notice of proposed rulemaking (NPRM) on April 1, seeking public input on stablecoin regulation. The federal agency is advancing implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, focusing on how state-level regulatory regimes compare with federal standards. The announcement stated:
“The NPRM is the first regulation Treasury has proposed to implement the GENIUS Act.”
“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 Treasury added.
The notice of proposed rulemaking outlines that states may regulate payment stablecoin issuers with total issuance below $10 billion if their frameworks align with federal requirements. It introduces broad-based 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 regimes must remain consistent with federal statutory obligations applied to permitted issuers.
State Oversight Rules and Federal Stablecoin Standards
The document explains that the GENIUS Act, enacted July 18, 2025, establishes a comprehensive system for payment stablecoins. It defines these assets as digital instruments designed for payments with fixed redemption 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), oversee issuers, while allowing qualified state issuers to operate under approved state regimes.
Public comments must be submitted within 60 days following publication in the Federal Register. Treasury is inviting feedback from industry participants, regulators, and other stakeholders. Submissions will be publicly available through the federal rulemaking portal, supporting transparency as the agency moves toward finalizing stablecoin regulations.
FAQ 🧭
What does the GENIUS Act mean for stablecoin issuers?It creates a federal framework while allowing compliant state-regulated issuers to operate. How will state and federal stablecoin regulations interact?States can regulate smaller issuers if their rules are substantially similar to federal standards. Which agencies oversee stablecoin issuers under the proposal?The Federal Reserve, FDIC, NCUA, and OCC share federal oversight responsibilities. Why is the Treasury seeking public comments on stablecoins?Feedback will shape final rules that directly impact market structure and investor confidence.
