Overview
- Treasury released an 87-page notice of proposed rulemaking and opened a 60-day public comment period to begin implementing the GENIUS Act.
- The proposal lets issuers with less than $10 billion in tokens operate under qualifying state regimes that are deemed “substantially similar” and that meet or exceed federal safeguards.
- Once an issuer’s supply tops $10 billion, the framework steers it into federal supervision anchored to Office of the Comptroller of the Currency rules and interpretations.
- To curb regulatory shopping, state regimes cannot weaken core protections such as full reserve backing, anti-money-laundering compliance, and monthly reserve composition disclosures.
- The NPRM is Treasury’s first step to translate the July 2025 law into practice, with final rules expected after comments and parallel efforts in Congress to clarify SEC and CFTC roles.