The US Department of the Treasury has begun implementing the GENIUS Act. The regulator issued its first notice and invited market participants to provide comments within 60 days.
In an 87-page document, the department explains how to determine whether state-level regulatory regimes for stablecoins are “substantially similar” to the federal system.
Two Levels of Requirements
Under the GENIUS Act, issuers of “stablecoins” with an issuance volume of less than $10 billion may opt for state-level regulation, provided they meet federal standards.
The proposed rule sets general criteria for such assessment, allowing local authorities freedom in licensing, supervision, and enforcement. The document divides the requirements into two types:
- uniform — reserve backing, compliance with AML/CFT;
- state-calibrated — where local regulators retain discretion (e.g., capital and risk management standards).
The key role in overseeing non-bank stablecoin issuers (when exceeding the $10 billion threshold) is assigned to the OCC — it is to its rules and interpretations that the federal standard is tied.
State regimes may be stricter than federal ones, provided they do not contradict the law and maintain overall comparability.
Reporting and Naming Requirements
States will not be able to weaken basic disclosure standards. Issuers are required to publish reports on reserve composition at least once a month — with the same frequency as at the federal level.
Naming restrictions also apply to both systems: companies regulated by states are prohibited from using certain terms in the branding of “stablecoins.”
The federal law remains the baseline. Any future Congressional legislation on stablecoin issuer regulation automatically applies to firms under state supervision unless otherwise specified.
Context
The adoption of the GENIUS Act in 2025 marked a turning point in US cryptocurrency policy. The law established the first federal standard for stablecoins, requiring issuers to have full reserve backing, comply with AML/CFT requirements, and publish reports.
Simultaneously, Congress is advancing additional bills, including the CLARITY Act, which aims to delineate the jurisdictions of the SEC and the CFTC.
Discussions are ongoing — the current version of the bill has raised questions among industry representatives. Many opposed the provision that prohibits earning income solely from holding stablecoins.
In March, US authorities recognized the right of cryptocurrency mixer users to privacy.
Later, the country proposed new rules for 401(k) retirement plans, reforms for the mining industry, and legislative protection for the strategic bitcoin reserve.