The U.S. Department of the Treasury issues the “GENIUS Act” state-level stablecoin regulation “substantially similar” judgment principles

Gate News message: On April 2, the U.S. Department of the Treasury issued broad principles under Section 4© of the “GENIUS Act” to determine whether state-level regulatory regimes are “substantially similar” to the federal regulatory framework. The core principles include: state-level regimes must meet or exceed the standards set forth in Section 4(a) of the “GENIUS Act”; for uniform requirements (reserve asset composition, redemption rights, monthly disclosures, BSA/sanctions compliance, etc.), state rules must be fully identical in substantive content to the federal framework; for state-adjustable requirements (capital, liquidity, reserve diversification, interest rate risk management, etc.), state rules may be tailored to local conditions, but the final regulatory outcome must be at least as strict and protective as the federal framework; states may add additional requirements, but they may not conflict with federal law and must not reduce overall similarity. The rule applies to state-qualified payment stablecoin issuers with an issuance volume of no more than $10 billion, allowing them to choose state regulation, while issuers with an issuance volume exceeding $10 billion must transition to federal regulation.