U.S. Treasury Unveils Proposed Stablecoin Rulebook Under GENIUS Act, Seeks Public Input

The U.S. Department of the Treasury on April 1 released a notice of proposed rulemaking (NPRM) to gather public feedback on a framework designed to align state and federal oversight of payment stablecoins, marking its first proposed regulation to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. Treasury said the GENIUS Act requires it to use notice-and-comment rulemaking to set broad principles for determining whether a state regulatory regime is "substantially similar" to the federal framework established under the law. Under the proposal, states could oversee payment stablecoin issuers with total outstanding issuance below $10 billion, provided their rules meet federal-aligned requirements. The NPRM lays out broad-based principles for comparing state frameworks with federal standards, separating core requirements intended to be uniform nationwide from areas where states may retain discretion, including capital standards and supervisory approaches. It also states that approved state regimes must remain consistent with federal statutory obligations that apply to permitted issuers. The notice describes the GENIUS Act, enacted July 18, 2025, as creating a comprehensive system for payment stablecoins, defined as digital instruments designed for payments with fixed redemption expectations tied to monetary value. It outlines federal oversight roles for agencies including the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC), while allowing qualified state-regulated issuers to operate under state regimes that receive approval. Public comments are due within 60 days after the proposal is published in the Federal Register. Treasury is soliciting input from industry participants, regulators, and other stakeholders, and submissions will be posted publicly through the federal rulemaking portal as the agency moves toward finalizing stablecoin rules.