Treasury Clears $10B Stablecoin Regulation Threshold for States
The U.S. Treasury Department has introduced a federal certification process that allows qualifying states to regulate stablecoin issuers with up to $10 billion in outstanding tokens.
Under the framework established by the GENIUS Act, a state-qualified payment stablecoin issuer with no more than $10 billion in consolidated outstanding issuance can choose state regulation if the state's regime is judged substantially similar to the federal framework.
States must submit a certification to the Stablecoin Certification Review Committee, which includes a detailed explanation of how their laws, regulations, and enforceable guidance meet federal standards.
The committee, chaired by the Treasury secretary, includes representatives from the Federal Reserve and FDIC, and requires a unanimous determination that the state framework meets or exceeds the GENIUS Act's standards.
States must then submit annual recertifications, and the structure builds on the broader U.S. stablecoin framework, which is increasingly pulling stablecoin issuers toward bank-style supervision and compliance.