Treasury publishes state stablecoin certification procedures under the GENIUS Act
The U.S. Treasury has released interim procedural rules detailing the application and review process for state-level stablecoin certification under the GENIUS Act. This framework establishes how state regulators must demonstrate that their oversight regimes are substantially similar to federal standards. The Stablecoin Certification Review Committee, consisting of the Treasury Secretary, the Federal Reserve Chair, and the FDIC Chairman, oversees this process. While these procedural rules became effective on September 30, the actual certification process remains on hold pending final paperwork approvals. A critical point of contention remains the broader criteria for substantial similarity, which was proposed in April but has faced significant pushback from state regulators. With the GENIUS Act requiring states to submit initial certifications by January 18, 2028, there is growing industry concern regarding the tight timeline for compliance. This development is vital for the RWA market as it clarifies the regulatory path for stablecoins, which serve as the primary liquidity layer for tokenized assets. Establishing a clear federal-state alignment is essential for the institutional adoption of stablecoins as a reliable medium of exchange for on-chain financial instruments.
