US Treasury Launches GENIUS Act Implementation with 60-Day Comment Period

Federal Stablecoin Regulation Moves to Implementation Phase

The US Department of the Treasury has officially kicked off the implementation process for the GENIUS Act — the country's first federal stablecoin regulatory framework. The agency released an 87-page notice and granted market participants a 60-day window to submit comments.

The document's primary focus is establishing a methodology for determining whether state-level stablecoin regulatory regimes are "substantially similar" to the federal system. This assessment mechanism is central to the GENIUS Act's architecture and will determine which issuers can remain under state jurisdiction.

Why This Matters

The GENIUS Act, passed in 2025, marked a watershed moment in US crypto policy by creating the first federal standard for stablecoins. The law requires issuers to maintain full reserve backing, comply with anti-money laundering and counter-terrorism financing (AML/CTF) rules, and publish regular disclosures. The release of implementation guidance signals a shift from legislative framework to practical enforcement — a transition that will affect every participant in the US stablecoin ecosystem.

Two-Tier Regulatory Framework

Under the GENIUS Act, stablecoin issuers with less than $10 billion in circulation can opt for state-level regulation, provided local standards meet federal benchmarks.

The proposed rules establish two categories of requirements:

• Uniform requirements— reserve backing and AML/CTF compliance, which are consistent across all levels.
• Calibrated requirements — capital standards and risk management practices, where states retain some flexibility.

The Office of the Comptroller of the Currency (OCC) assumes a central oversight role for non-bank stablecoin issuers that exceed the $10 billion threshold. OCC rules and guidance serve as the federal benchmark against which state regimes are measured.

State regulators may impose stricter standards than the federal baseline, but only if those standards do not conflict with the law or undermine overall comparability.

Disclosure Standards and Naming Restrictions

The document sets clear transparency requirements. Issuers must publish reports on reserve composition at least once a month — a frequency that applies equally at both federal and state levels. States cannot weaken baseline disclosure standards.

Beyond reporting, the law introduces naming restrictions: state-regulated companies are prohibited from using certain terms in stablecoin branding. Federal law serves as the regulatory floor, and any future congressional legislation targeting stablecoin issuers will automatically extend to state-supervised firms unless explicitly stated otherwise.

Broader Regulatory Landscape

Alongside GENIUS Act implementation, Congress is advancing additional legislative initiatives. These include the CLARITY Act, designed to delineate the jurisdictions of the SEC and CFTC over digital assets. The current draft has sparked debate within the industry, with many market participants opposing a provision that would ban yield payments to customers solely for holding stablecoins.

In March 2026, US authorities also recognized the privacy rights of crypto mixer users. Additionally, new rules were proposed for 401(k) retirement plans involving crypto assets, along with reforms for the mining industry and legislative protections for a strategic Bitcoin reserve.

The launch of GENIUS Act implementation is part of a sweeping regulatory transformation shaping the US crypto market. Industry stakeholders now have 60 days to influence the final shape of the rules.