Treasury dey consult on GENIUS Act state stablecoin rules

U.S. Treasury don start 60-day public consultation to define how GENIUS Act stablecoin regulation go work for state level. Di proposal clear when states fit supervise issuers and how state rules suppose align with federal standards. Big eligibility threshold na be size: issuers wey get under $10 billion circulating stablecoins fit qualify for state oversight only if state frameworks dey “substantially similar” to federal rules. Treasury also set hard guardrails for stablecoin regulation, like full 1:1 reserve backing with cash or high-quality liquid equivalents, and mandatory monthly disclosures. For all jurisdictions, anti-money-laundering and sanctions compliance no dey negotiable. The proposal still repeat ban on rehypothecation — mean say stablecoin reserves no fit dey reused to support multiple obligations. States fit put stricter liquidity, reserve, risk-management, enforcement, and administrative requirements, but dem no fit weaken protections compared to the federal regime. Key wildcard na yield-bearing stablecoins. This issue fit stall the CLARITY market-structure bill: token makers talk say yield products fit compete with traditional savings, while banks dey warn about deposit outflows. For traders, e mean short-term predictability boost for compliant issuers, but ongoing yield-policy uncertainty keep volatility risk high for stablecoin-linked markets.