The US Treasury Department has begun implementing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, releasing its first notice of proposed rulemaking (NPRM) and opening a 60-day public comment period.
Page 87 thoughts It explains how the Treasury will consider whether the government-level stablecoin regulations are “more similar” to the federal framework-important to allow small providers to remain under government supervision.
Under the GENIUS Act, stablecoin issuers with capitalization of less than $10 billion can choose of state regulations, as long as those regulations meet or exceed federal standards. The law establishes the main principles governing the decision, leaving flexibility to states in areas such as licensing, supervision, and enforcement.
According to the document, the Treasury makes a clear distinction between “common interests” – such as supporting reserves and anti-money laundering – and “government-controlled interests,” where local authorities retain discretion, including funding and risk management.
In particular, the proposal sets a federal benchmark specifically for legislation and definitions given and the Office of the Comptroller of the Currency, showing its central role in overseeing nonbank stablecoin issuers that change government supervision after crossing $10 billion.
The Act also clarifies that state construction may exceed federal requirements, as long as it does not conflict with federal law or interfere with all comparability.
Advances in US crypto regulation
The NPRM represents the Treasury’s first step in translating the GENIUS Act — enacted in July 2025 — into a regulatory framework for stablecoins, with final regulations expected after the public comment period closes.
Governments will also be prevented from weakening key disclosure principles, with providers required to publish monthly archived reports – in line with government requirements on a regular basis.
The naming ban also works for both purposes, preventing government-controlled issuers from using prohibited terms on the stablecoin.
The proposal emphasizes that federal law remains the foundation, stating that any future laws passed by Congress governing stablecoin providers will only apply to federally regulated companies unless expressly stated otherwise.
The 2025 paragraph The GENIUS Act dramatically changed US crypto policy, establishing the first system of stablecoins requiring full funding, AML compliance, and regular disclosure.
The law appears to legalize dollar-backed stablecoins while strengthening US monetary authority.
Since then, the focus has shifted to implementing and enforcing laws. Treasury reports issued under the GENIUS Act are expanding regulatory tools, including measures that target illicit funds and crypto mixes.
At the same time, conflicts between banks and crypto companiesespecially if stablecoins can provide yield, they will delay the main market effort.
Meanwhile, Congress is advancing additional bills like the Clarity Act to define the jurisdiction of the SEC and the CFTC, signaling a major push toward regulatory oversight of digital assets.
