Bipartisan senators led by Lummis urge the U.S. Treasury to retain state-level stablecoin regulation authority under the GENIUS Act

Goldman Sachs reports that on June 17, a bipartisan group of senators led by Cynthia Lummis sent a letter to U.S. Treasury Secretary Scott Bessent, requesting that the Treasury maintain state regulatory authority over certain stablecoin issuers when developing implementation rules for the GENIUS stablecoin bill. The GENIUS bill was signed into law last year, establishing a federal stablecoin regulatory framework in the United States, requiring stablecoins to be fully backed by U.S. dollars or similar highly liquid assets, and mandating annual audits for issuers with a market cap exceeding $50 billion, while also setting rules for offshore issuances.
The bill allows stablecoin issuers with a market cap of no more than $10 billion to be regulated at the state level, provided that the relevant state regulatory system is "substantially similar" to federal requirements. The senators believe that the rules previously proposed by the Treasury did not clearly specify the timeline and standards for applying, reviewing, and certifying state-level regulatory systems, creating uncertainty for states. The letter pointed out that legislative cycles vary significantly across states, with some states adopting a two-year legislative cycle, thus requiring a flexible and continuously open certification mechanism to ensure states can apply for certification when needed, rather than being limited by timing mismatches that could hinder innovation and competition.
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