This move by the two senators is quite crucial; if state-level regulation is sidelined, stablecoin compliance will only become more chaotic.

CoinWorld reports that a group of bipartisan senators is urging the Treasury Department to preserve the role of state regulators in the regulation of stablecoins when finalizing the GENIUS Act rules. The letter emphasizes that Section 4(c) provides a pathway for states to certify stablecoin systems, requiring that state participation be maintained as a principle and that written guidance be issued to specify the timeline for state filings, reviews, and certifications. It warns that without clear timelines and requirements, future participation may be excluded, and stresses that this is a long-term process rather than a one-time window.