Key Highlights
- The U.S. Treasury proposed rules to implement the GENIUS Act and is asking the public for comments within the next 60 days.
- Only approved companies can issue stablecoins, and they must follow strict rules like full reserves, audits, and transparency.
- Small stablecoin companies (under $10 billion) can choose state regulation if the state rules match federal standards
The U.S. Department of the Treasury today issued a proposed rule in the United States to implement the GENIUS ACT, and is now seeking public feedback within 60 days
The proposal, known as a notice of proposed rulemaking (NPRM), is an official step used by the government to suggest new rules and ask for public input before making them final. It focuses on setting guidelines for how to decide if state-level regulations are similar enough to federal rules.
Why this matters
Under the GENIUS Act, stablecoin companies with $10 billion or less in circulation can choose to be regulated at the state level instead of by federal agencies.
However, the state rules must align closely with the federal rules. The Treasury will decide how to measure if the state rules are “substantially similar” to federal rules. This is to ensure that whether a company is supervised by a state or the federal government, it follows the same safety standards.
What the stablecoin law covers
The GENIUS Act, also called “Guiding and Establishing National Innovation for U.S. Stablecoins Act,” was signed into law by U.S. President Donald Trump in July 2025 with an initial goal of establishing a legal framework for stablecoins in the United States.
The law requires companies to follow anti-money laundering and anti-terrorism rules. It also states that if a stablecoin company fails, customers will be given priority to recover their funds. At the same time, only approved companies, called permitted payment stablecoin issuers, can legally issue these digital tokens in the country.
These companies must follow strict requirements, including holding full reserves to back the value of their coins, providing clear financial information, and undergoing regular audits. This means, for example, that if a company issues $1 billion in stablecoins, it must hold $1 billion in safe assets to support them.
Oversight and next steps
Several federal agencies will oversee this system, including the Federal Reserve, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency. These agencies are responsible for licensing companies, checking their activities, and ensuring they follow the law.
A review committee will also assess whether state-level systems meet the required standards before companies can operate under them.
The Treasury said the public feedback will be used to develop the final rules. This allows businesses, experts, and the general public to share their views. The current proposal builds on an earlier request for feedback issued in August 2025, which asked questions about how to apply the GENIUS Act. However, the new system is expected to fully take effect by November 2026.
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