The U.S. Department of the Treasury has initiated the implementation of the GENIUS Act. The regulator issued its first notice and called on market participants to provide comments within 60 days.

In the 87-page document, the agency explains how to determine whether state-level stablecoin regulations are "substantially similar" to federal standards.

Two Levels of Requirements

Under the GENIUS Act, issuers of "stablecoins" with issuance volumes below $10 billion can opt for state-level regulation, provided they comply with federal standards.

The proposed rule establishes general criteria for such assessments while allowing local authorities discretion in licensing, oversight, and enforcement. The document categorizes requirements into two types:

  • Uniform — ensuring reserves and compliance with AML/CFT;
  • State-calibrated — where local regulators retain flexibility (e.g., capital and risk management standards).

The OCC will play a key role in overseeing non-bank stablecoin issuers (once they exceed the $10 billion threshold), as federal standards are tied to its rules and clarifications.

State regimes may be stricter than federal ones, provided they do not contradict the law or undermine overall comparability.

Reporting and Naming Requirements

States will not be able to weaken basic disclosure standards. Issuers are required to publish reserve composition reports at least monthly, matching the federal reporting frequency.

Naming restrictions also apply to both systems: state-regulated companies are prohibited from using certain terms in the branding of their "stablecoins."

Federal law remains the baseline. Any future Congressional legislation regulating stablecoin issuers will automatically apply to firms under state supervision unless stated otherwise.

Context

The passage of the GENIUS Act in 2025 marked a turning point in U.S. cryptocurrency policy. The law established the first federal standard for stablecoins, requiring issuers to maintain full reserve backing, comply with AML/CFT requirements, and publish reports.

Meanwhile, Congress is advancing additional bills, including the CLARITY Act, which aims to delineate the jurisdictions of the SEC and CFTC.

Discussions are ongoing — the current version of the bill has raised concerns among industry representatives. Many have opposed a provision that prohibits accruing income for clients solely based on their ownership of stablecoins.

In March, U.S. authorities recognized the right of users of crypto mixers to privacy.

Later, new rules for 401(k) retirement plans, reforms for the mining industry, and legislative protection for strategic Bitcoin reserves were proposed in the country.