🚨 State regulators push back as Treasury tries to fold OCC-style rules into state stablecoin oversight under the GENIUS Act 🚨
State banking regulators are objecting to Treasury’s stablecoin rulemaking, arguing that it overreaches by importing OCC standards into a framework meant to preserve state flexibility. The dispute is now about who gets to define the baseline for state-issued stablecoins.
🔑 Key points
🔹 The Conference of State Bank Supervisors submitted comments to Treasury on the proposed GENIUS Act rulemaking for state-issued stablecoins.
🔹 CSBS says Treasury is overstepping by expanding requirements to include OCC rules, arguing the statute does not require states to follow or defer to the OCC or any other federal payment stablecoin regulator.
🔹 The group says the GENIUS Act gives states flexibility so long as they meet or exceed the Act’s baseline standards.
🔹 The Stablecoin Certification Review Committee, which includes Treasury, the Fed, and the FDIC, is the body meant to certify state compliance — not the OCC.
🔹 CSBS also objects to Treasury’s use of “uniform” requirements, warning that Treasury cannot impose a “substantial similarity” principle that blocks states from exceeding federal baseline standards.
🎯 Bottom line: This is a turf war over whether state stablecoin regulation stays state-led or gets quietly federalized through OCC standards.
https://www.ledgerinsights.com/state-regulators-object-to-treasury-imposing-occ-stablecoin-rules-on-states/