The Fed is scrambling to meet the one-year regulatory deadline granted in June under the GENIUS Act, which expires this Saturday, July 18th, and Chairman Kevin Warsh explicitly acknowledged this before the House Financial Services Committee on Tuesday, summarizing the situation by saying, "we're racing."

The Fed is scrambling to meet the one-year regulatory deadline granted in June under the GENIUS Act, which expires this Saturday, July 18th, and Chairman Kevin Warsh explicitly acknowledged this before the House Financial Services Committee on Tuesday, summarizing the situation by saying, "we're racing."

This law was signed into law exactly one year ago, on July 18, 2025, requiring seven federal agencies—the OCC, FDIC, Fed, NCUA, Treasury, FinCEN, and OFAC—to complete their implementation rules within a year. Between December 2025 and June 2026, these agencies published their draft proposals on issues such as capital, reserves, liquidity, redemption, and financial crime compliance. But the crucial point is that the Fed itself, despite being one of the primary federal payment stablecoin regulators designated by the law, had still not published a concrete rule proposal on its own when all comment periods closed on June 9th, apart from a joint customer authentication rule developed with the other agencies.

In response to a direct question from Congressman Bryan Steil, Warsh assured that the Fed is working to issue rules in a timely manner. But the most noteworthy part was his statement on regulatory coordination. Warsh stated that while joint proposals may not be possible in every case, regulators should aim to issue rules as concurrently as possible, which would provide greater consistency across the banking system. This statement implies that full coordination is not always guaranteed, and some institutions may act independently, which perfectly aligns with the possibility of "less coordination" that the question itself pointed to.

In the same session, Warsh also categorically rejected the possibility of a bailout operation for crypto and stablecoin projects. In his own words, "we don't want to be in the bailout business, period. We want to be in a position where we don't bail out anyone, including crypto." This clearly reveals the philosophy underlying the Fed's approach to stablecoin regulation: a regulatory framework will be created, but there will be no guarantee or backing mechanism behind it.

The law itself contains a significant structural detail: there's no automatic backup plan if the rules aren't finalized, leaving the implications of a missed deadline unclear. The framework will go into effect 120 days after the final rules are published, or at the latest on January 18, 2027, whichever comes first. There's also visible tension between the banking and crypto sectors, with some reports suggesting regulators are giving the crypto sector almost everything it wants while pushing aside serious objections from the banking sector regarding reserve quality standards.

For those following stablecoin regulation through Gate, the key question is whether this Saturday's deadline will actually be met and whether the Fed's own rules will finally emerge. The Fed's delay remains a source of uncertainty directly impacting how consistent and predictable the entire framework will be, particularly regarding which rules will apply to state banks that are members of the Fed.

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