U.S. Senators Advocate for State Inclusion in GENIUS Act Stablecoin Framework

Bipartisan Senate Support for State Certification in Stablecoin Oversight

A bipartisan group of U.S. senators is urging the Treasury Department to establish a clear process allowing states to validate their regulatory frameworks for stablecoins under the GENIUS Act. Led by Republican Senator Cynthia Lummis, the group emphasizes the importance of state involvement in overseeing stablecoin issuers.

The GENIUS Act, which is being implemented across federal financial agencies, has drawn concerns from state regulators who feel excluded from discussions on how their frameworks align with federal standards. In a letter to the Treasury, Lummis and her colleagues highlighted the need for explicit guidance on how states can demonstrate that their regulatory practices are consistent with federal guidelines.

Signatories of the letter include both Republican and Democratic senators, such as Angela Alsobrooks, Catherine Cortez Masto, and Kirsten Gillibrand. They stressed that without clearly defined principles and timelines from the Treasury, state regulators remain uncertain about their next steps in the certification process.

Senators expressed concern that ambiguity in procedural guidance could hinder states' participation in stablecoin regulation. They called for written procedural guidelines that would outline the application, review, and certification processes, ensuring these are adaptable to the varying legislative timelines of individual states.