The Treasury Department issued a proposed rule to implement GENIUS Act policies on state-level regulatory regimes.
Details: Treasury said:
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Under the GENIUS Act, payment stablecoin issuers with a consolidated total outstanding issuance of not more than $10 billion may opt for regulation under a state-level regulatory regime as long as the regime is substantially similar to the federal regulatory framework.
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The GENIUS Act directs Treasury to establish broad-based principles for determining whether a state-level regulatory regime is substantially similar to the federal regulatory framework.
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The OCC regulatory framework will serve as a key component of the federal regulatory framework, underscoring the significance of the OCC’s implementation plans.
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Comments are due within 60 days of publication in the Federal Register.
OCC Proposal: The OCC issued its GENIUS Act implementation proposal in late February, and it will take public comments through May 1. ICBA is assessing the OCC’s proposal and intends to respond.
Other Proposals: These proposals are part of a growing list of active and anticipated regulatory proposals to implement the GENIUS Act.
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The FDIC last week told Congress that it will soon be issuing proposed prudential requirements for FDIC-supervised payment stablecoin issuers, including tailored requirements related to reserve assets, capital, liquidity, and principles-based risk management requirements.
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The FDIC in December proposed a rule to implement the law’s application provisions that would establish procedures for the agency to accept and process payment stablecoin issuer applications from FDIC-supervised banks.
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The FDIC in February announced a 90-day extension of the comment deadline for the application proposal from Feb. 17 to May 18 following a requested extension from ICBA and other groups.
ICBA Principles: ICBA in November sent key principles for payment stablecoin supervision in a letter to the Treasury Department regarding implementation of the GENIUS Act.