Paradigm submitted a letter of comment to the U.S. Treasury Department regarding the state-level regulatory pathway of the GENIUS Act.

CoinFeed reported on June 3 that, according to its official blog, Paradigm has submitted a letter of comment to the U.S. Treasury Department regarding the development of state-level regulatory pathway rules under the GENIUS Act. Paradigm supports the core framework of the proposal but points out that without addressing four issues, the state-level pathway will not effectively serve issuers. First, the proposal anchors the federal framework to the still-unfinalized OCC regulations, requiring states and issuers to plan for undefined benchmarks, directly hindering market access. The Treasury Department should not finalize the OCC implementation rules before they are finalized. Second, the proposal requires unanimous agreement from the Treasury Department, the Federal Reserve, and the FDIC for state-level certification, but it lacks a decision-making timeline, a mechanism for vetoing interpretation standards, or a mechanism to prevent a single member from indefinitely blocking certification.