The U.S. Department of the Treasury has presented the long-awaited draft of regulatory rules aimed at the practical implementation of the GENIUS Act — the first federal law in the country's history regulating payment stablecoins. This document, known as the Notice of Proposed Rulemaking (NPRM), is designed to translate legislative principles into specific requirements for issuers and market participants in digital dollars.
Structure and Key Provisions of the NPRM
The published draft focuses on Section 3 of the GENIUS Act, which was signed in July 2025. The main attention is given to defining a payment stablecoin, the mechanisms for its issuance, as well as issues of jurisdiction and supervisory authority. In essence, the regulator is now determining which companies will be able to legally operate with these assets within the new federal framework.
Special emphasis is placed on collateral requirements. Payment stablecoins must be backed by reserves at a 1:1 ratio, with the list of permissible assets strictly limited to highly liquid instruments: U.S. dollars, bank deposits, and short-term Treasury bonds. The law also requires regular disclosure of reserve information and independent audits.
Practical Implications for the Market
The key goal of the regulation is to guarantee holders the ability to redeem stablecoins at par value, which significantly reduces systemic risks for the financial ecosystem. However, it is important to emphasize: the new rules do not introduce government insurance for these assets. The FDIC chair has previously clearly stated the position that stablecoin holders will not receive protection similar to bank deposit insurance.
Currently, the document is in the public comment stage, and the Treasury has opened a collection of comments from interested parties. This is already the second phase of the law's implementation — in April, the agency proposed rules regarding the interaction of the federal regime with state-level regulation. It is worth noting that the statutory deadline for issuing the regulatory framework expired on July 18, but the final rules must take effect no later than 120 days after their official publication.
My Analysis
The Treasury's initiative is an important step toward legitimizing stablecoins as a full-fledged payment instrument, but it also creates a precedent for strict control. Against this backdrop, the CLARITY Act continues to be considered in the Senate, which could further refine the structure of the digital asset market. In my view, the market is entering a phase of consolidation, where only those issuers willing to embrace full transparency and strict compliance with new standards will survive.