Treasury Closes Comment Period on GENIUS Act Rules for State Oversight of Sub-$10 Billion Stablecoin Issuers

The US Treasury's comment period on rules to implement the GENIUS Act closes on June 2, moving the stablecoin law closer to implementation. The rulemaking will define when a state regulatory regime is considered "substantially similar" to the federal framework, a threshold that lets stablecoin issuers with less than $10 billion in outstanding issuance choose state-level regulation instead of federal oversight.

In comments filed on the deadline, the Blockchain Association said state regimes should have to meet or exceed the federal baseline on reserve composition, redemption obligations and statutory definitions. The group also proposed a passporting system that would let issuers licensed in approved states operate across state lines without duplicative licensing, and said state consumer-protection powers should not be used to impose separate licensing or market-access requirements on federally supervised issuers.