US Senators Push for State Regulation of Stablecoins Under GENIUS Act
- A bipartisan group of US senators, led by Senator Cynthia Lummis, has urged the Treasury to allow state regulation of stablecoin issuers.
- The GENIUS Act permits states to regulate stablecoins with a market value of $10 billion or less.
- Currently, only three stablecoins—Tether (USDt), USDC (USDC), and USDS (USDS)—exceed this threshold.
- Senators expressed concerns over the Treasury’s lack of clarity regarding state certification timelines and procedures.
- The letter was signed by additional Republican and Democratic senators, emphasizing the importance of state participation in regulating stablecoins.
The push for state authority in regulating stablecoins reflects a desire to maintain a dual banking system while addressing regulatory uncertainties that may arise from the GENIUS Act’s implementation.
With only three stablecoins above the $10 billion mark, the outcome of this regulatory framework could significantly impact how most stablecoin issuers are governed moving forward.
