GENIUS Act Update: Coinbase Expects Stablecoin Rules Very Soon

US lawmakers have reportedly resumed work on stablecoin rules under the Clarity Act. This is a positive development considering the recent backlash from US banks over stablecoin yields. The U.S. Department of the Treasury is now seeking public comments on the proposed rulemaking.

Update on the Stablcoins GENIUS Act

The U.S. Department of the Treasury has begun implementing the GENIUS Act by releasing an 87-page proposed rule. It also marks the first step toward stablecoin oversight.

The proposal opens a 60-day public comment period, allowing industry participants and stakeholders to provide feedback before final regulations are adopted. Although the framework is not yet finalized, the move signals a transition from legislation to execution.

Under the GENIUS Act, only permitted payment stablecoin issuers will be allowed to issue payment stablecoins in the United States. This is subject to specific exceptions and regulatory safe harbors.

The framework assigns oversight responsibilities to key federal regulators. It includes the Federal Reserve, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency.

These agencies will jointly establish licensing, supervision, and compliance standards for approved stablecoin issuers. However, the legislation also allows state-regulated stablecoin issuers with less than $10 billion in outstanding issuance to operate under state supervision.

This is permitted only if the state regulatory framework is deemed substantially similar to federal standards and approved by the Stablecoin Certification Review Committee.

More Light on Stablecoin Yield

The release of the stablecoin yield compromise text has been delayed as reported by journalist Eleanor Terret. It also pushes back expectations for clarity on the proposed legislation.

According to sources cited by Crypto In America, a spokesperson for Thom Tillis confirmed that the stablecoin yield text will no longer be released this week. It marks a major shift from earlier guidance.

Sources familiar with the matter indicated that lawmakers delayed the release to avoid giving opponents additional time to slow the bill’s progress ahead of a markup now expected in the second half of the month.

The delay comes as negotiations continue between crypto industry stakeholders, banking groups, and lawmakers. It happened after the dissatisfaction with an earlier draft developed by Thom Tillis, Angela Alsobrooks, and the White House.

Speaking to Fox News, Coinbase CEO Paul Grewal said he is confident that the U.S. crypto market-structure bill will make progress in the near term. He signalled growing momentum for digital asset legislation.

According to Grewal, the U.S. Senate Banking Committee could hold a markup session within the next few weeks. This would represent a key step toward advancing the bill.

Following the markup, the legislation could proceed to a full Senate floor vote. This marks a significant milestone in efforts to establish a comprehensive regulatory framework for the U.S. crypto market.