US Senators Push Treasury to Preserve State Authority Over Stablecoins

A bipartisan group of U.S. senators has written to Treasury Secretary Scott Bessent urging the department to retain state‑level regulatory authority under the GENIUS Act. The senators argue that Treasury’s draft implementation could effectively preempt state oversight by applying a narrow “substantially similar” standard, creating uncertainty for state regulators.

The GENIUS Act, signed by former President Donald Trump, creates a federal framework for stablecoin issuers but allows issuers with a market value of $10 billion or less to remain under state supervision if the state’s rules are deemed comparable. Senators, including Republican Cynthia Lummis, Bill Hagerty, Kevin Cramer and Democrats Kirsten Gillibrand, Angela Alsobrooks, and Catherine Cortez Masto, called for clear guidance, a transparent certification timeline, and flexible procedures so states can continue participating.

Treasury released draft principles in April and closed public comment on June 2. The outcome will shape compliance costs, licensing choices, and the flow of stablecoin transactions across U.S. exchanges.