US Treasury Implements GENIUS Act for Stablecoin Oversight

The US Treasury begins GENIUS Act implementation, introducing federal oversight, reserve requirements, and a $10B threshold for stablecoin issuers.

The U.S. Department of the Treasury has initiated the implementation of the GENIUS Act by publishing the first set of rules, which introduce mandatory federal oversight of the stablecoin market and put an end to previous regulatory ambiguity.

The document, published on April 1, transforms the legislation passed in 2025 into a concrete implementation framework, defining requirements for reserves, reporting, and issuer licensing. This shifts the sector from a fragmented model of state-level regulation to a centralized federal system.

A key element is the $10 billion threshold, which determines whether an issuer can remain under state supervision. Smaller companies will only have this option if local regimes meet federal standards—a condition that industry experts suggest could accelerate the transition toward stricter regulation.

Stricter Control and the End of Yield

The law also prohibits offering yield on stablecoins, with regulators clearly stating that even indirect incentives will be viewed as an attempt to bypass the rules. This measure aims to prevent stablecoins from being used as an alternative to bank deposits outside of official supervision.

In parallel, the Office of the Comptroller of the Currency (OCC) is beginning the process of issuing a new federal license for stablecoin issuers. This will allow non-bank companies to operate under direct supervision and gain access to the Federal Reserve’s payment infrastructure.

The new rules also introduce more stringent reserve requirements, including mandatory full backing with high-quality liquid assets, daily disclosures, and regular independent audits. This move brings the sector closer to the standards of the traditional financial system.

The final framework is expected to be adopted by July, with full implementation by the end of the year, leaving companies with limited time to bring their operations into compliance.

This move signals a clear shift in the U.S. approach—moving from an experimental market to a strictly regulated one, where access will be restricted to participants capable of meeting federal requirements.