The US stablecoin regulation framework has just moved into a more practical stage.
On April 1, the US Department of the Treasury released the first notice of proposed rulemaking for the GENIUS Act.
We previously highlighted why the GENIUS Act remains incomplete despite becoming law in mid-2025 despite debates only centering on its intent and structure.
Now we have a new countdown.
The Treasury has given stakeholders 60 days, starting on April 1, to comment on key matters as the GENIUS implementation window narrows.
What we are seeing here is the law quietly turning into a practical regulatory language that determines how stablecoin issuers operate in the coming years.
“Substantially similar,” the real debate
We all know the stablecoin yield conflict between banks and crypto entities has stalled the CLARITY Act in the Senate. Meanwhile, one phrase in today’s proposal has stirred discussion. And it is “substantially similar.”
Precisely, what makes federal standards and a state regulatory regime “substantially similar?”
Well, the GENIUS Act allows stablecoin issuers with an outstanding supply worth less than $10 billion to opt for state oversight as long as the state framework matches federal equivalency.
Now the Treasury wants the public to help define what such equivalency looks like. Banks, policy groups, and banks have 60 days to comment and directly influence how flexible or strict the final rules appear.
Building on ongoing pressure
The Treasury’s move isn’t an isolated one. It comes after OCC’s February guidance, which presented a 367-page proposal highlighting licensing requirements, reserve rules, and liquidity crises.
Notably, that framework also left 211 unanswered questions. You can now tell how challenging the rulemaking procedure is.
The OCC wants answers to its over 200 questions by May 1, while the Treasury has given a 60-day commentary window.
Consequently, the new proposal has added another layer to the evolving structure. And this will determine whether crypto clarity arrives soon, or we will have a more complicated landscape in the coming years.
Regulators have until July 18, 2026, to finalize GENIUS Act rules before its January 2027 enactment (or earlier upon accelerated procedures.
