Senators Press Treasury for Clear State Role in GENIUS Act Stablecoin Rules
A bipartisan group of U.S. senators urged the Treasury Department to give states a clear path to certify their stablecoin oversight regimes under the GENIUS Act. The lawmakers said unclear procedures could leave state regulators uncertain about how to participate in the new federal framework.
What happened?
A bipartisan group of U.S. senators urged the Treasury Department to give states a clear path to certify their stablecoin oversight regimes under the GENIUS Act. The lawmakers said unclear procedures could leave state regulators uncertain about how to participate in the new federal framework.
Why it matters
The lawmakers also want the process to include clear timelines and requirements while remaining flexible enough for different state legislatures to respond on their own schedules. Treasury proposed stablecoin regulations in April, and federal agencies are continuing to translate the GENIUS Act into working rules for issuers and regulators.
A bipartisan group of U.S. senators is pushing the U.S. Treasury Department to clarify how states can remain involved in stablecoin supervision under the GENIUS Act. In a letter led by Senator Cynthia Lummis, lawmakers argued that Treasury’s early implementation work did not spell out the timeline or process states must follow to show their regulatory systems are comparable to the federal framework.
The issue matters because the GENIUS Act allows some room for state-level oversight of stablecoin issuers, but only if a state can demonstrate that its standards meet the required level. Without a defined certification process, state regulators and crypto companies could face uncertainty over which supervisory path will apply.
The senators said Treasury’s proposed principles for evaluating state regimes are central to the law’s rollout, but that the department has not provided enough procedural detail. According to the lawmakers, stakeholders are concerned that unclear guidance could be interpreted in a way that limits future state participation.
The letter was signed by Republicans and Democrats, including Angela Alsobrooks, Catherine Cortez Masto and Kirsten Gillibrand. The group asked Treasury Secretary Scott Bessent to issue written procedural guidance covering applications, reviews and certifications for state stablecoin regimes.
The lawmakers also want the process to include clear timelines and requirements while remaining flexible enough for different state legislatures to respond on their own schedules. Treasury proposed stablecoin regulations in April, and federal agencies are continuing to translate the GENIUS Act into working rules for issuers and regulators.