US Treasury Just Published Stablecoin Rules for a $300 Billion Market — Here’s What Changes

The US government is moving closer to a full regulatory framework for stablecoins — and the rules could reshape a $300 billion market.

The Headline

The US Treasury published a notice of proposed rulemaking (NPRM) on Wednesday, seeking public comment on how states should regulate stablecoins under the GENIUS Act — the landmark stablecoin law signed by President Trump in July 2025.

The proposal lays out the ground rules for state-level regulation of stablecoins with market caps under $10 billion. Above that threshold, issuers fall under exclusive federal jurisdiction.

The Key Rules

The Treasury’s proposal includes several non-negotiable requirements that states must enforce:

• 1:1 reserve backing — every stablecoin must be backed by cash or high-quality cash equivalents
• Monthly reporting — issuers must publish regular attestation reports
• Full AML/sanctions compliance — anti-money laundering rules apply across the board
• No rehypothecation — you can’t use the same asset to back multiple claims
• States can be stricter — but never more lenient than federal standards

“State-level regulatory regimes must lead to regulatory outcomes that are at least as stringent and protective as the Federal regulatory framework,” the proposal states.

The Big Fight: Yield-Bearing Stablecoins

One issue the GENIUS Act left unresolved is whether stablecoin issuers can pay interest to holders. That debate is now stalling the broader CLARITY crypto market structure bill in Congress.

The two sides:

• Coinbase and crypto companies: Yield-bearing stablecoins give savers a competitive alternative to traditional savings accounts (which typically pay under 1%)
• Banking lobby: Stablecoins with yield will cause deposit flight and erode banks’ market share

Standard Chartered has projected that stablecoin outflows from traditional banks could reach significant levels by 2028 if yield-bearing tokens are allowed.

What This Means for You

• Stablecoins are going mainstream: With $300B in market cap and formal federal/state regulation coming, stablecoins are no longer a “crypto thing” — they’re becoming financial infrastructure
• Safer, but more restricted: The 1:1 reserve requirement and monthly audits make stablecoins more trustworthy, but innovation may slow
• Watch the yield debate: If yield-bearing stablecoins get approved, your savings account suddenly has real competition
• 60-day comment period: The public has two months to weigh in before rules are finalized

The GENIUS Act was a landmark moment for crypto regulation. This NPRM is where the rubber meets the road — the specific rules that will determine how stablecoins actually operate across 50 states.

Regulation is coming. The question is whether it empowers or constrains.

Sources: CoinTelegraph | US Treasury