The Treasury Department today published an interim final rule establishing the forms and procedures used by a federal committee that reviews state stablecoin regulatory regimes.
The Genius Act allows payment stablecoin issuers with a consolidated total outstanding issuance of less than $10 billion to opt for regulation under a state-level regulatory regime, provided that the state’s regime is “substantially similar” to the federal regulatory framework. To make those determinations, the bill created the Stablecoin Certification Review Committee, which is composed of the Treasury Secretary, the Federal Reserve chair (or the vice chair for supervision, if so delegated), and the FDIC chair.
The interim rule creates the procedures the SCRC will follow when determining whether state regulatory regimes are substantially similar to federal law. It also sets up an opportunity to cure and an appeals process for denials. In addiiton, it establishes requirements for the forms that states must submit for certification and annual recertification. In addition, the rule defines “material change” and “significant change in circumstances,” which will apply in different situations.
Response to banker concerns
Also, in response to a key issue raised by the American Bankers Association, 52 state bankers associations and other stakeholders, Treasury clarified that state regulators can satisfy the initial certification deadline contained in the Genius Act by “submitting any form of certification by January 18, 2028, even if the certification is conditional on additional planned state legislative or regulatory work or would otherwise be considered incomplete under these procedures.”
The interim rule is separate from a proposed rule released earlier this year that would establish the criteria the committee uses in determining whether to certify state regulatory regimes. That rule has not yet been finalized.
Although effective immediately, Treasury will not begin accepting certifications until the Paperwork Reduction Act process is resolved. Treasury plans to post a notification on its website.
The comment period on the interim rule is open until Nov. 30.
