$10 Billion Line Drawn Through Stablecoin Market as Treasury Issues GENIUS Act Rule

The U.S. Treasury Department has issued its first rule under the GENIUS Act, effectively drawing a $10 billion line through the stablecoin market.

The interim final rule, published on September 30, establishes the procedural machinery for the Stablecoin Certification Review Committee (SCRC), which will evaluate state-level regulatory regimes to determine if they are 'substantially similar' to federal standards.

The $10 billion threshold sets a hard line that enforces a structural bifurcation in the stablecoin market. Issuers with consolidated total outstanding issuance of $10 billion or less may opt for state regulation, while those exceeding this mark must transition to the federal framework within 360 days, unless they secure a specific waiver.

Tether and Circle, the two largest players in the space, are well above the $10 billion mark and are effectively barred from the state-level route. The American Bankers Association (ABA) has raised concerns that state-certified frameworks could inadvertently permit stablecoin issuers to engage in activities beyond the narrow scope defined by the GENIUS Act.