CryptoSlate
States can seek approval of their payment stablecoin regimes before finishing the rules that would govern issuers, under a Treasury interim final rule effective Sept. 30. An initial conditional certification can meet the filing timeframe, but the state must complete its work before substantive review. Treasury will not accept certifications until the required information collection receives Paperwork Reduction Act approval and it announces that filings can begin.
Why it matters
The route is relevant to state-qualified payment stablecoin issuers with no more than $10 billion in consolidated outstanding issuance. Under the GENIUS Act framework, an issuer may opt for state regulation if its regulator certifies that the state regime meets Treasury's substantial-similarity criteria and the federal Stablecoin Certification Review Committee unanimously approves it as meeting or exceeding the Act's standards.
The procedural rule sets filing forms and review steps, not the final principles for judging substantial similarity. Treasury is addressing those principles in a separate proposal. A conditional certification can be amended, giving states time to complete planned legislation or regulation without automatically approving their regimes or licensing individual issuers.
Market impact
The flexibility preserves a potential state-regulated route for eligible issuers, but it does not accelerate the Committee's substantive decision. Its 30-day approval-or-denial clock starts only after a state submits a complete certification, including an unconditional signed attestation, an explanation of how its regime meets Treasury's criteria and supporting legal materials.
The rule uses Jan. 18, 2028 as the initial certification date, based on an expected Jan. 18, 2027 effective date for the GENIUS Act. The statutory deadline is one year after the Act takes effect, which could occur earlier under the Act's implementation timetable. Comments on the interim procedures are due Nov. 30.
Frequently asked questions
-
What does a conditional state certification accomplish?
It can satisfy the initial filing timeframe while a state finishes planned legislative or regulatory work. It does not approve the state regime or license an issuer.
-
Which stablecoin issuers could use the state-regulated route?
The route is available to state-qualified payment stablecoin issuers with no more than $10 billion in consolidated outstanding payment stablecoin issuance, subject to the required state certification and unanimous federal committee approval.
-
When does the committee's 30-day decision clock begin?
It begins only after a state submits a complete certification under the procedures. A conditional or incomplete filing does not start substantive review.
-
What must a state submit for substantive review?
It must provide an unconditional attestation signed by an authorized representative, an explanation of how its regime meets Treasury's similarity principles, supporting legal materials and any other information the committee requires.
-
When can states submit certifications?
Treasury will announce when acceptance begins, after Paperwork Reduction Act approval of the required information collection. The rule uses Jan. 18, 2028 for initial certifications, but the statutory deadline depends on when the GENIUS Act takes effect.
TheBlock
CoinDesk
WuBlockchain
Crypto News