Broad-Based Principles for Determining Whether a State-Level Regulatory Regime Is Substantially Similar to the Federal Regulatory Framework for Payment Stablecoins
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The Department of the Treasury proposes rules implementing section 4(c) of the GENIUS Act (enacted July 18, 2025) that establish broad principles for the Stablecoin Certification Review Committee to evaluate whether a State's regulatory regime for payment stablecoins is "substantially similar" to the federal framework. The proposal defines the Federal regulatory framework as the GENIUS Act statute plus specific OCC, Treasury, and FRB implementing regulations. It distinguishes between "uniform requirements" (such as reserve asset requirements, AML/sanctions programs) that must be consistent across federal and state regimes, and "State-calibrated requirements" (such as capital standards) where states have more flexibility to set equivalent but not identical rules. States may use legislation, regulation, or enforceable guidance and may add stricter rules provided they do not conflict with federal law. The $10 billion issuance threshold determines which issuers may opt for qualifying state regulation instead of federal oversight.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Establishes broad principles for Stablecoin Certification Review Committee to approve state regimes as 'substantially similar' to federal framework
- Defines Federal regulatory framework to include GENIUS Act statute plus OCC, Treasury, and FRB implementing regulations published in Federal Register
- Distinguishes 'uniform requirements' (reserves, AML/sanctions) that must be consistent vs 'State-calibrated requirements' (capital) allowing state flexibility
+ 3 more changes with Pro
Obligations
What this law requires
State-level regulatory regimes must establish reserve asset requirements that are consistent with federal uniform requirements under the GENIUS Act
State-level regulatory regimes must establish anti-money laundering (AML) and sanctions programs that are consistent with federal uniform requirements under the GENIUS Act
States may establish capital standards that differ from federal standards provided they meet or exceed the federal framework standards (State-calibrated requirement)
State-level regulatory regimes must be documented through legislation, regulation, or enforceable guidance
State qualified payment stablecoin issuers must maintain consolidated total outstanding issuance of payment stablecoins of no more than $10 billion to qualify for state regulation instead of federal oversight