Treasury issues GENIUS Act rule proposal, seeks comment on state oversight for smaller issuers
Members of the public will have 60 days to respond to the Treasury’s notice of proposed rulemaking in the Federal Register.
The U.S. Treasury Department has issued a proposed rule under the GENIUS Act that would establish state oversight frameworks for smaller digital asset issuers. The department published its notice of proposed rulemaking in the Federal Register, opening a 60-day public comment period for stakeholders to provide feedback on the regulatory framework.
The GENIUS Act, which aims to create clearer regulatory pathways for digital assets, specifically addresses oversight mechanisms for issuers that may not fall under existing federal regulatory schemes. The proposed rule would delegate certain supervisory responsibilities to state regulators, potentially creating a more tailored approach for smaller market participants who currently face regulatory uncertainty.
Industry observers view this development as a significant step toward establishing comprehensive digital asset regulation in the United States. The state-level oversight component could provide smaller issuers with more accessible regulatory pathways while maintaining investor protection standards. This approach may reduce compliance costs for emerging companies while ensuring appropriate regulatory oversight remains in place.
The 60-day comment period represents a crucial opportunity for industry participants to influence the final rule structure. Market participants, state regulators, and trade associations are expected to submit detailed responses addressing implementation challenges, compliance requirements, and potential coordination mechanisms between state and federal authorities.
Source: The Block
