U.S. Department of the Treasury Has Taken a New Step Toward Its Expected Move on Cryptocurrency

The U.S. Treasury Department has taken a significant step toward regulating stablecoins by initiating the first official implementation process under the GENIUS Act. The department announced the release of a proposed draft regulation (NPRM) for the framework of the law.

The 87-page draft regulation sets out the first concrete framework for how the GENIUS Act will be implemented, focusing particularly on the compatibility of state-based regulatory regimes with the federal system. Accordingly, issuers of payment stablecoins with a total issuance size of less than $10 billion may choose to be subject to state-level regulations under certain conditions. However, these regimes must be “substantially similar” to the federal framework.

The Treasury Department has requested feedback from the public and industry stakeholders regarding the published draft. According to the statement, a 60-day comment period has been initiated for parties wishing to contribute to the regulatory process. All submissions will be made publicly available.

However, banks and cryptocurrency representatives have yet to reach an agreement on the Clarity Act, another stablecoin law.

*This is not investment advice.