U.S. Treasury Allows States to Seek Stablecoin Approval Amid Regulatory Changes

The U.S. Treasury has implemented a new interim final rule that permits states to apply for stablecoin approval while their regulatory frameworks remain incomplete. This rule, effective as of September 30, 2023, allows states to submit an initial certification and finalize their regulations before undergoing a substantive review.

The Stablecoin Certification Review Committee, responsible for evaluating state stablecoin regimes, has outlined that conditional or incomplete certifications can meet the initial filing requirements. However, actual certifications will only be accepted after the Paperwork Reduction Act approval is granted, with a notice to be issued by the Treasury when the acceptance begins.

This flexibility is particularly significant for payment stablecoin issuers with less than $10 billion in consolidated outstanding issuance. These issuers may choose state regulation if their state regulator certifies that its regime aligns with the Treasury's substantial-similarity criteria, which will be assessed by the Committee.

Additionally, the rule establishes that a conditional filing can be amended at any time and does not initiate the 30-day approval or denial clock until a complete certification is submitted. This allows states the opportunity to finalize their legislative and regulatory processes after the initial filing.

Comments on the interim procedures are due by November 30, 2023, as the Treasury continues to refine its approach to stablecoin regulation.

New Developments in Stablecoin Regulation

• Over 50,000 Europeans participated in the European Commission’s MiCA review consultation, advocating for regulated stablecoins to offer rewards like cashback and loyalty perks.
• Stand With Crypto EU organized the push and reported that a separate petition for a broader pro-innovation stablecoin strategy has gathered over 126,000 signatures.
• The consultation period closed on September 30, 2026, transforming the regulatory process into a significant public engagement event.
• The European System of Central Banks proposed to tighten existing rules, extending the prohibition on interest-like payments to include indirect yield mechanisms such as lending and staking.
• The ECB maintains that electronic money should serve as a payment tool rather than a savings product, opposing the introduction of consumer-facing incentives for stablecoin issuers.