The U.S. Treasury’s draft guidance on the GENIUS Act faced a bipartisan challenge from a coalition of senators demanding that state regulatory authority stay intact for stablecoin issuers.
Senators Insist on State Oversight
Senator Cynthia Lummis led the letter to Treasury Secretary Scott Bessent, urging the agency to preserve meaningful state power over crypto‑related payments. The delegation asked for clear criteria that would let states qualify under the GENIUS Act without encountering prohibitive barriers.
GENIUS Act’s State‑Level Framework
The legislation creates a dual‑track system, allowing state regulators to supervise stablecoin operators whose assets total $10 billion or less. Participating jurisdictions must align their rules with federal standards while retaining the ability to enforce local requirements.
Implications for the Crypto Market
Lawmakers warned that Treasury’s vague draft could leave investors uncertain as states craft their own stablecoin rules. Greater clarity could stabilize the market, support blockchain innovation, and protect consumers who rely on stablecoins for everyday transactions.