U.S. senators press Treasury to clarify state stablecoin oversight process under GENIUS Act

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Senators press Treasury on stablecoin oversight

Highlights

U.S. senators led by Cynthia Lummis urged the Treasury to provide written procedural guidance clarifying the state oversight certification process under the GENIUS Act.
Lawmakers warned that a lack of clear application, review, and approval timelines could hinder state participation and create regulatory uncertainty for stablecoin issuers.
Treasury's handling of the state certification issue may significantly influence the evolving balance of authority between federal and state regulators as new crypto laws, including the Digital Asset Market Clarity Act, advance.

Lawmakers seek clearer certification framework

As reported by CoinDesk, senators led by Republican Cynthia Lummis say Treasury's finalized principles for deciding whether state oversight regimes are substantially similar to the federal framework are a critical part of the new stablecoin law's rollout.

In a Tuesday letter to Treasury Secretary Scott Bessent, the lawmakers say the department's proposed principles did not address the timeline and procedural requirements for state certification. They warn that, without written guidance on how applications will be reviewed and approved, states may be left uncertain about the next steps.

The GENIUS Act allows for some state-level oversight of stablecoin issuers if states can show their supervision and standards are on par with those of federal regulators. The senators say stakeholders have raised concerns that, absent clearer procedures, the certification process could be interpreted in a way that effectively shuts out future state participation.

Implications for U.S. crypto regulation

The letter is signed by Republicans and several Democrats, including Angela Alsobrooks, Catherine Cortez Masto and Kirsten Gillibrand, reflecting cross-party interest in how the stablecoin regime is being implemented. The lawmakers are asking Treasury to issue written procedural guidance that clarifies the application, review and certification process for state regimes, with clear timelines and requirements.

They also say the process needs enough flexibility to accommodate the different legislative calendars and regulatory structures across U.S. states. The dispute highlights the broader tension in digital-asset regulation between federal standard-setting and preserving a role for state supervisors as Washington builds out the post-GENIUS framework.

The issue also arrives as lawmakers continue negotiating other crypto legislation, including the Digital Asset Market Clarity Act, which is still moving through the Senate. How Treasury resolves the state certification question could shape the balance of authority in the next phase of U.S. stablecoin oversight.

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