According to CoinMeta, the U.S. Treasury Department has announced the creation of a federal certification process that allows qualified state regulators to oversee stablecoin issuers with a maximum value of $10 billion. Under the Genius Act, qualified state payment stablecoin issuers can opt for state regulation, provided that the state’s regulatory framework is deemed substantially similar to the federal framework. The temporary final rules issued by the Treasury Department require state regulatory agencies to submit certifications to the Stablecoin Certification Review Committee, including detailed explanations of how their laws, regulations, and enforceable guidelines comply with federal standards. The committee is chaired by the Secretary of the Treasury and also includes representatives from the Federal Reserve and FDIC. Initial certification approval requires a unanimous decision that the state framework complies with or exceeds the standards of the Genius Act. States are required to submit annual re-certifications. This structure is built upon the broader U.S. stablecoin framework and increasingly brings stablecoin issuers under bank-like regulation and compliance requirements.