A bipartisan group of U.S. senators is pressing the Treasury Department to ensure states have a clear path to participate in overseeing stablecoin issuers under the GENIUS Act.
Led by Senator Cynthia Lummis, the lawmakers argue that state regulators have been overlooked in the federal government’s early efforts to implement the landmark stablecoin legislation. They contend that states should be given an explicit process to demonstrate that their regulatory frameworks meet standards comparable to those imposed by federal authorities.
The GENIUS Act, which establishes a regulatory framework for stablecoin issuers, is currently being translated into rules by multiple federal agencies, including the Treasury Department. However, senators say Treasury’s initial guidance has left state regulators uncertain about how they can qualify for oversight authority under the law.
In a letter sent Tuesday to Treasury Secretary Scott Bessent, the lawmakers noted that while Treasury has proposed principles for determining whether state regulatory regimes are “substantially similar” to federal standards, it has yet to outline the procedures or timelines states must follow to obtain certification.
The absence of clear guidance has created confusion among state regulators and industry participants, according to the senators. They warned that without a transparent process, states could effectively be shut out of the framework envisioned by Congress.
“We have heard from stakeholders that, absent clear procedural guidance, the certification process could be interpreted or applied in a manner that effectively forecloses future participation,” the lawmakers wrote.
To address those concerns, the senators are urging Treasury to publish detailed procedural guidance covering how states can apply for certification, how applications will be reviewed, and the timelines involved. They also called for a flexible approach that accommodates the differing legislative and regulatory processes across states.
