Treasury Stablecoin Plan Threatens State Rules, Advocates Warn

A Treasury Department proposal to set a national baseline for regulating payment stablecoin issuers risks eliminating stronger state-level protections, state regulators and consumer advocates warned.

The department’s proposal issued in April would require a panel of federal banking regulators created by the 2025 GENIUS Act (Public Law 119-27) to determine whether state payment stablecoin rules are “substantially similar” to federal guidelines. It would set a regulatory framework currently under development by the Office of the Comptroller of the Currency for payment stablecoins as the standard that should be matched.

But the GENIUS Act gave states room to craft ...