US Treasury Proposes Rule to Implement GENIUS Act, Enhancing Stablecoin Regulation

The U.S. Department of the Treasury is actively working to solidify the regulatory landscape for digital assets, particularly focusing on stablecoins. On April 1, 2026, the Treasury issued a notice of proposed rulemaking (NPRM) to gather public feedback on its implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This proposed rule is designed to lay out broad principles for assessing whether a state's regulatory approach to stablecoins is sufficiently aligned with the federal framework. This is a critical development as it provides a potential pathway for stablecoin issuers with a consolidated total outstanding issuance of not more than $10 billion to operate under an approved state-level regime rather than direct federal oversight. According to sources, the GENIUS Act, signed into law in July 2025, mandates that regulators finalize all implementation rules by July 18, 2026. The law also stipulates that stablecoin issuers must maintain reserves equivalent to 100% of their issuance in highly liquid assets, such as U.S. dollars or short-term treasuries. Furthermore, issuance is restricted to entities operating through banks, credit unions, approved non-bank financial firms, or state-licensed non-bank issuers under a comparable state regime, all subject to federal oversight. This regulatory push is part of a broader effort to maintain U.S. leadership in digital asset technologies while countering illicit finance risks, as highlighted in recent Treasury National Risk Assessments. The NPRM is open for public comment, indicating a transparent approach to finalizing these crucial regulations that will shape the future of stablecoins in the U.S. financial system.