The GENIUS Act was a critical first step for payment stablecoins issued by permitted payment stablecoin issuers to be eligible as cash or cash-equivalent margin and collateral for use and acceptance by futures commission merchants, derivatives clearing organizations, etc.
FIA commented on the US Treasury's proposed rule implementing the GENIUS Act to express concern regarding potential implications for the use of certain payment stablecoins as collateral in the cleared derivatives industry.
Specifically, any limitations on redemption or transfer, where they exist, are at odds with the policy objectives of eligible collateral in the cleared derivatives space.
FIA encouraged the US Treasury, the Federal payment stablecoins regulators, including the Office of the Comptroller of the Currency, and the Commodity Futures Trading Commission and the Securities and Exchange Commission to engage in robust dialogue to avoid an outcome that may impact the utility of the GENIUS Act in cleared derivatives markets.
