Bipartisan lawmakers demand Treasury establish a clear process for state regulators to qualify for stablecoin supervision parity with federal standards.
A group of U.S. senators, led by Republican Cynthia Lummis, urged the Treasury Department to ensure states have a defined process to demonstrate their ability to supervise stablecoins under the GENIUS Act. The lawmakers argue that current proposals lack clarity on how states can prove their regulatory standards match federal oversight.
The GENIUS Act, aimed at regulating stablecoin issuers, allows for state-level supervision if states meet certain proficiency requirements. However, senators claim state regulators were sidelined in Treasury’s initial implementation efforts, prompting a bipartisan letter to address the oversight gap.
The letter, sent Tuesday, emphasizes that states must be given a fair opportunity to participate in stablecoin regulation. Lummis, chair of the Senate Banking Committee’s crypto subcommittee, spearheaded the effort to ensure state involvement in the federal framework.