The U.S. Treasury Department has opened a public consultation on proposed rules under the GENIUS Act, aiming to establish criteria for determining whether state regulatory systems are "substantially similar" to the federal stablecoin regulatory framework. Under this framework, stablecoin issuers with issuance not exceeding $10 billion may opt for state-level regulation, provided that the state's system meets federal standards in areas such as reserves, disclosure, risk management, and regulatory authority. Issuers that fail to meet these criteria or do not submit certification will be subject to federal regulation.