Senators urge Treasury ensure state authority in GENIUS application
A bipartisan group of US senators, led by Cynthia Lummis, urged the Treasury to preserve meaningful state oversight as it writes rules for the GENIUS Act. In a letter to Secretary Scott Bessent, they said the law was intended to maintain the dual banking system and let state banking agencies supervise certain stablecoin issuers. Under the act, issuers with stablecoins worth $10 billion or less can be regulated by states if state laws are substantially similar to the federal framework. The senators warned Treasury’s draft left unclear the timeline and process for state certification, creating uncertainty and possibly limiting states to a one-time chance to qualify. They called for a flexible certification system so states can seek approval when their legislatures are ready. Treasury is now preparing a final rule after public comments closed.
