According to Paradigm's official blog, the company submitted comments to the U.S. Department of the Treasury on June 3 regarding the state-level regulatory pathway rules for the "GENIUS Act." Paradigm supports the core framework of the proposal but points out that four modifications are necessary to enable the state-level pathway to effectively serve issuers. Key recommendations include: anchoring the federal framework to the finalized OCC regulatory regulations, establishing a 180-day decision period for tri-department certification, and setting clear rejection standards; allowing states to adjust the 12-month operational reserve requirements based on issuer size and risk profile; and addressing gaps in preventing hostile state-level actions.
According to Paradigm's official blog, the company submitted comments to the U.S. Department of the Treasury on June 3 regarding the state-level regulatory pathway rules for the "GENIUS Act." Paradigm supports the core framework of the proposal but points out that four modifications are necessary to enable the state-level pathway to effectively serve issuers. Key recommendations include: anchoring the federal framework to the finalized OCC regulatory regulations, establishing a 180-day decision period for tri-department certification, and setting clear rejection standards; allowing states to adjust the 12-month operational reserve requirements based on issuer size and risk profile; and addressing gaps in preventing hostile state-level actions.