Key players: Treasury leads implementation, chairing the Stablecoin Certification Review Committee with the Federal Reserve, FDIC, and OCC; OCC issued a prior February 2026 NPRM on related rules excluding BSA/AML/OFAC.[1][3][5][6] The GENIUS Act (enacted July 18, 2025, after congressional passage in June/July) defines Permitted Payment Stablecoin Issuers (PPSIs)—including insured depository subsidiaries (federal-approved), nonbanks/federal branches (OCC-approved), or smaller issuers (<$10B outstanding) under certified state regimes.[2][5][6][8] Issuers exceeding $10B must transition to federal oversight within 360 days, or halt issuance if states fail certification.[1][3][6]
Context and timeline: The GENIUS Act, the first U.S. federal law for USD-backed payment stablecoins (pegged for payments, not securities/currency), passed Congress (Senate 68-30 on June 17, House 308-122 on July 17) and was signed July 18, 2025, creating a dual federal-state framework with strict rules (no rehypothecation, no yield, AML/KYC, bankruptcy priority for holders).[4][6][8] It followed regulatory gaps in a $316B market (e.g., USDT at 58%); OCC's February NPRM preceded this, with BSA/AML/lawful-order rules pending.[1][3][5]
Newsworthy now: Issued just days ago (April 1), this NPRM operationalizes state-federal alignment, potentially forcing transitions for growing issuers amid a booming stablecoin sector, clarifying oversight amid prior uncertainty and enabling innovation under federal baselines.[1][3][7] Public comments are open, shaping final rules in an evolving framework.[7]