US States Get Federal Greenlight to Regulate Stablecoins Up to $10B

The US Treasury Department has established a federal certification process for states to regulate stablecoin issuers up to $10 billion in outstanding issuance. This is part of the GENIUS Act, which requires states to submit their regulatory frameworks for approval by the Stablecoin Certification Review Committee.

The committee, chaired by the Treasury secretary and including representatives from the Federal Reserve and FDIC, will evaluate whether a state's framework meets or exceeds federal standards. If approved, the state can regulate stablecoin issuers with no more than $10 billion in consolidated outstanding issuance.

This threshold creates different regulatory paths for stablecoin issuers depending on their size. Smaller issuers may be able to remain under an approved state regime, while larger businesses will need to transition away from that pathway and toward federal oversight.