Treasury proposes regulation for GENIUS Act

The U.S. Treasury Department has put forth its inaugural regulation designed to implement the stablecoin-focused GENIUS Act. This proposed rule, issued as a notice of proposed rulemaking, aims to establish clear principles for assessing whether state-level regulatory frameworks are sufficiently aligned with the federal standards set by the GENIUS Act. The initiative reflects a concerted effort to harmonize regulatory approaches to stablecoins, fostering a more consistent and predictable environment for digital assets and the financial institutions operating within this evolving sector.