Definition
The U.S. dual banking system allows financial institutions to charter under federal or state authority. The genius-act extends this model to payment stablecoins — smaller issuers may use state pathways if regimes are “substantially similar” to the federal framework.
Key Points
- **10B outstanding may elect state supervision; above threshold must transition to federal oversight
- Treasury NPRM (April 2026): Defines uniform vs state-calibrated requirements; no new stablecoin-specific charter — uses existing banking charters (2026-07-12-treasury-genius-act-consumer-finance-monitor)
- Federal lane: OCC national trust charters for circle, paxos, sony-bank connectia-trust
- 1:1 reserves in high-quality liquid assets; BSA/AML programs required at both levels
Briefs.co July 12 article misdates Treasury NPRM as new same-day proposal. Primary NPRM published April 1, 2026 (Federal Register April 3).
Related
- genius-act
- stablecoin-regulation
- us-department-of-the-treasury
- industrial-bank-charter
- stablecoin
- us-crypto-policy