The U.S. Treasury releases the first draft of the implementation rules for the GENIUS Act, seeking feedback from state regulators on small stablecoin issuers.

Jinse Finance reported that on April 2, the U.S. Department of the Treasury released the first Notice of Proposed Rulemaking (NPRM) for the "Guiding and Establishing National Innovation for U.S. Stablecoins Act" (GENIUS Act), seeking public comments on the recognition standards for state-level regulatory frameworks applicable to small stablecoin issuers. The proposal aims to clarify that when a state regulatory system is "substantially similar" to the federal framework, stablecoin issuers with an issuance scale of less than $10 billion can choose to be subject to state regulation instead of comprehensive federal oversight. The public will have a 60-day comment period after the rule is published in the Federal Register. The Treasury stated that this rule will establish general principles to determine whether state regulation meets federal standards. Currently, major U.S. banking regulators, including the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), are successively releasing related draft rules to advance the implementation of the stablecoin regulatory framework. Meanwhile, the GENIUS Act still does not cover rules related to yield-bearing stablecoins, which has become a major obstacle for Congress in advancing broader crypto market structure legislation.