Federal stablecoin baseline supports healthy, competitive ecosystem

As Treasury works to implement the GENIUS Act, it wants feedback on broad-based principles for determining whether a state-level regulatory regime is substantially similar to the federal regulatory framework. America’s Credit Unions filed comments calling for Treasury to establish a strong federal regulatory baseline for permitted payment stablecoin issuers (PPSIs) and prohibit “unsafe or poorly calibrated” state-level regulatory regimes.

“Setting a federal regulatory baseline promotes appropriate enforcement, supervision, and governance around stablecoin issuance and other activities,” the letter reads, adding that the proposal promotes a healthy, competitive ecosystem for credit unions in the stablecoin market.

America’s Credit Unions also urges Treasury to consider other applicable federal rulemakings imposing standards on PPSIs, such as reserve, redemption, custody, capital, and risk management requirements.

“Largely basing the Federal regulatory framework on the Office of the Comptroller of the Currency (OCC) requirements and interpretations could establish a regulatory floor that evolves to become less stringent than rules applicable to federally regulated credit unions which are not national banks or federal savings associations, resulting in a competitive disadvantage for those entities,” the letter reads.

Read the full letter