Treasury will let states file for stablecoin approval before finishing their rules
A new Treasury interim final rule allows states to file for stablecoin approval before their regulations are fully complete, using conditional certifications to meet initial deadlines before undergoing substantive review.
An interim final rule issued by the Treasury on Sept. 30 allows states to keep a clear pathway toward stablecoin-regime approval even if their regulations are still unfinished. States can achieve this by submitting an initial certification on time and finishing the remaining work prior to substantive review.
The regulation outlines the review procedures and forms for the Stablecoin Certification Review Committee, which is the federal agency tasked with evaluating state stablecoin frameworks. According to the Committee, incomplete or conditional certifications can fulfill the initial filing deadline, even if further regulatory or legislative actions are still planned.
Although the rule went into effect on Sept. 30, certifications will not be accepted until the information collection receives approval under the Paperwork Reduction Act. The Treasury will publish a notice to announce when submission acceptance officially begins.
This flexibility is particularly important for state-qualified payment stablecoin issuers with consolidated outstanding payment stablecoin issuance of no more than $10 billion. These issuers can choose state regulation if the relevant state regulator certifies that its framework satisfies the Treasury’s substantial-similarity criteria and the Committee grants unanimous approval, confirming it matches or exceeds the requirements and standards outlined in section 4(a) of the GENIUS Act.
A separate Treasury proposal regarding substantial similarity covers the standards applied when comparing federal and state frameworks. The procedural rule released in September does not finalize those specific principles.
How a filing reaches substantive review
Any conditional filing may be amended at any point. However, it does not trigger a substantive review or launch the Committee’s 30-day window for approval or denial. That official clock only starts once a formal certification is submitted in line with established procedures.
To reach that stage, a state must submit an unconditional attestation signed by an authorized representative, a thorough explanation detailing how its framework satisfies the Treasury’s similarity principles, all relevant legal documentation, and any additional information requested by the Committee.
This separation provides states with the necessary time to complete their regulatory or legislative measures after meeting the initial deadline. It does not, however, grant automatic approval to their regimes or issue licenses directly to individual stablecoin issuers.
Coverage of the July deadline by CryptoSlate highlighted the difficulties in evaluating state equivalence while OCC, Treasury, and federal rules remained incomplete. The updated rule establishes review procedures and forms—incorporating initial filing flexibility—while preserving the strict requirements needed for substantive approval.
The regulation establishes Jan. 18, 2028, as the target for initial certifications, calculated from the anticipated Jan. 18, 2027 effective date of the GENIUS Act. By statute, the filing deadline is set for one year following the implementation of the Act.
The Act has the potential to take effect sooner. Section 20 specifies that it will trigger on the earlier of two milestones: 18 months following enactment, or 120 days after primary federal payment stablecoin regulators release any final regulations to implement it.
Public comments regarding these interim procedures must be submitted by Nov. 30.
Frequently Asked Questions
01What does the Treasury’s Sept. 30 rule allow states to do?
The rule allows states to maintain a path toward stablecoin-regime approval even while their rules are still incomplete, provided they file an initial certification on time and finish the work before substantive review.
02Who qualifies for the state regulation option under the guidelines?
State-qualified payment stablecoin issuers with no more than $10 billion in consolidated outstanding payment stablecoin issuance may opt for state regulation if their state regulator’s regime meets Treasury’s substantial-similarity criteria and receives unanimous Committee approval.
03When is the deadline for public comments on the interim procedures?
Comments on the interim procedures are due by Nov. 30.
