{"id":43102,"date":"2025-08-20T09:01:31","date_gmt":"2025-08-20T09:01:31","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=43102"},"modified":"2025-08-20T09:01:31","modified_gmt":"2025-08-20T09:01:31","slug":"us-federal-regulators-to-review-state-level-stablecoin-frameworks-under-genius-act","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=43102","title":{"rendered":"US Federal Regulators To Review State-Level Stablecoin Frameworks Under GENIUS Act"},"content":{"rendered":"
\n

US federal regulators are set to review state regulations of stablecoins to \u201ceven out\u201d rules across jurisdictions under the new federal regulatory framework for the sector, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.<\/p>\n

State-Level Stablecoin Rules To Face Federal Review<\/h2>\n

A federal committee led by the US Treasury Secretary is expected<\/a> to start evaluating state-level regulatory regimes to determine whether they are similar to the federal regulatory framework under the GENIUS Act.<\/p>\n

Following last month\u2019s enactment of the landmark crypto legislation, the Stablecoin Certification Review, comprised of the US Treasury Secretary and the chairmen of the Federal Reserve and the Federal Deposit Insurance Corporation, is in charge of reviewing state-by-state rules and \u201cestablish broad-based principles for determining whether a State-level regulatory regime is substantially similar to the Federal regulatory framework under this Act.\u201d<\/p>\n

\"stablecoin\"<\/p>\n

The requirement aims to level out regulatory approaches between states to make compliance by stablecoin issuers more seamless across jurisdictions, as issuers face a different set of rules and policies depending on each jurisdiction, with some states having a stricter approach to the industry while others have a more welcoming strategy.<\/p>\n

Gavin Meyers, a financial services regulatory partner at Pierson Ferdinand LLP, told Bloomberg Law that \u201cIt creates a potential for less of a mosaic of state-by-state regulation, which kind of plagues other aspects of the financial industry,\u201d asserting that \u201celiminating that barrier is a highly beneficial aspect of the committee.\u201d<\/p>\n

\u201cThere will be some wiggle room in states that have been more favorable to crypto generally, like Wyoming,\u201d Meyers affirmed. Notably, Wyoming has passed<\/a>\u00a0over 45 pieces of crypto-related legislation since 2016, including a bill in 2023 that authorized a state commission to\u00a0issue stablecoins pegged to the US dollar.<\/p>\n

Moreover, it launched Frontier (FRNT), the US\u2019s first state-issued stablecoin, on seven blockchains, including Ethereum, Solana, and Avalanche, on August 19. Nonetheless, \u201cdue to lingering regulatory hurdles, the token is not yet available to the public,\u201d noted<\/a> crypto journalist Eleanor Terrett on X.<\/p>\n

The Importance Of Clear Frameworks<\/h2>\n

According to the Bloomberg Law report, the federal Committee is ready to \u201ceven out the state-by-state approach, curtailing stricter regulatory regimes<\/a> or building upon permissive state frameworks.\u201d<\/p>\n

Rosemary Spaziani, a partner at Gibson Dunn & Crutcher LLP, told the news media outlet that \u201cIf 40 states all sign on to what the federal government does, those are going to be pretty simple rubber stamps\u2014they\u2019re going to adopt a model act and incorporate it into their laws,\u201d while \u201cthe ones that deviate are probably going to be a bit of a bottleneck.\u201d<\/p>\n

Additionally, the companies hoping to enter the stablecoin sector will likely welcome federal oversight to avoid potential compliance issues. Meyers noted that \u201cIf you are licensed by whichever state that qualifies under the \u2018GENIUS Act,\u2019 that certification is good across the country.\u201d<\/p>\n

Recently, leading banking associations sent<\/a> a joint letter to the US Senate Banking Committee calling for amendments to the GENIUS Act. The associations asked the lawmakers to address multiple \u201cloopholes\u201d in the landmark legislation, arguing that a clear regulatory framework is crucial for the digital assets market.<\/p>\n

Among the recommendations, they urged the Committee to strengthen the prohibition on interest payments related to payment stablecoins and to repeal a section of the GENIUS Act that allows uninsured, out-of-state-chartered financial institutions to operate without the host states\u2019 approval, which could complicate regulation.<\/p>\n

\"stablecoin,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

US federal regulators are set to review state regulations of stablecoins to \u201ceven out\u201d rules across jurisdictions under the new federal regulatory framework for the sector, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. State-Level Stablecoin Rules To Face Federal Review A federal committee led by the US Treasury Secretary is expected […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-43102","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/43102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=43102"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/43102\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}