Bipartisan Senators Urge Treasury to Preserve State Authority Over $10B Stablecoins Under GENIUS Act

According to The Block, on June 17, bipartisan senators led by Cynthia Lummis urged the U.S. Treasury Department to preserve states' regulatory authority over stablecoins under the GENIUS Act. The Act allows stablecoin issuers with market capitalizations not exceeding $10 billion to be regulated at the state level if state rules are substantially similar to federal requirements.

The Treasury issued a proposed rule in April outlining broad principles for determining substantial similarity but did not clarify the timeline or standards for state-level approval. The senators requested the Treasury issue guidance specifying the application, review, and certification process for state regimes to reduce uncertainty.