A bipartisan group of U.S. senators is urging the Treasury Department to provide states with a clear pathway to secure oversight authority under the GENIUS Act, arguing that state regulators risk being sidelined in the implementation of the country’s new stablecoin framework.
The lawmakers, led by Senator Cynthia Lummis, said states should have an explicit process for demonstrating that their regulatory and supervisory standards are comparable to those of federal agencies. Their concerns come as federal regulators move to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, the first comprehensive law governing stablecoin issuers.
In a letter sent Tuesday to Treasury Secretary Scott Bessent, the senators said Treasury’s initial guidance falls short of explaining how states can obtain certification to oversee stablecoin issuers. While the department has proposed principles for assessing whether state regulatory regimes are “substantially similar” to the federal framework, it has not outlined the procedures, requirements, or timeline for certification.
The lack of clarity has created uncertainty among state regulators, many of whom are developing their own GENIUS-compliant rules. According to the lawmakers, stakeholders have expressed concern that an undefined certification process could ultimately limit or prevent states from participating in the regulatory structure established 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 senators wrote.
The letter was signed by several Republicans and Democrats, including Senators Angela Alsobrooks, Catherine Cortez Masto and Kirsten Gillibrand, all of whom have played key roles in shaping digital asset legislation.
To prevent confusion and ensure states remain part of the framework, the lawmakers called on Treasury to issue written guidance detailing the application, review and certification process. They also urged the department to establish clear deadlines and requirements while allowing enough flexibility to accommodate the varying legislative timelines and regulatory structures across individual states.
