Bipartisan Senators Push Treasury to Uphold States’ Authority Under GENIUS Act
A group of bipartisan senators is urging the Treasury Department to protect states’ rights to regulate smaller stablecoin issuers under the GENIUS Act. They want clear rules and timelines so states can participate effectively.
Senators Demand Clarity
Led by Sen. Cynthia Lummis (R-Wyo.), senators from both parties sent a letter to Treasury Secretary Scott Bessent on Tuesday. The group includes Sens. Kirsten Gillibrand (D-N.Y.), Pete Ricketts (R-Neb.), Catherine Cortez Masto (D-Nev.), and others.
They are pressing Treasury to preserve states’ ability to regulate stablecoins with up to $10 billion in market value, as long as state rules are “substantially similar” to federal standards.
Key Provisions of the GENIUS Act
President Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS Act) into law last year. The law creates a federal framework requiring stablecoins to be fully backed by U.S. dollars or liquid assets, with audits for large issuers.
One important section allows smaller stablecoin issuers to operate under state regulation instead of federal oversight.
Concerns Over Proposed Rules
In April, the Treasury released proposed rulemaking for the GENIUS Act. However, it did not include clear timelines or detailed standards for state certification.
The senators warned that this lack of clarity creates uncertainty for states. They emphasized that states need a flexible, ongoing process to develop and certify their regulatory regimes due to varying legislative schedules.
Call for Guidance
The senators asked Treasury to issue guidance on the application, review, and certification process for state stablecoin rules. This would support innovation, competition, and allow states like New York to align their frameworks with the federal law.
