U.S. senators urge Treasury not to leave states out of GENIUS Act stablecoin process

PolicyU.S. senators urge Treasury not to leave states out of GENIUS Act stablecoin processSenators led by Republican Cynthia Lummis are insisting the Treasury Department ensure states get a process to prove their ability to supervise stablecoins.By Jesse Hamilton|Edited by Nikhilesh De Jun 16, 2026, 8:36 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowStates need to be given a fair chance to demonstrate that their stablecoin regulatory approach is at the same level as federal supervision, according to a letter from several senators that suggests the Treasury Department didn't provide a clear enough process for states in its most recent proposals.The GENIUS Act leaves room for some state-level oversight of stablecoins, as long as the states can demonstrate a certain level of proficiency.State regulators got sidelined in the U.S. Department of the Treasury's effort to implement the new U.S. stablecoin law, according to several senators from both parties who insist that the states need to be given an explicit process for proving their supervision and standards are on par with federal regulators'.The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act to regulate stablecoin issuers is being translated into regulations across several federal financial agencies, including the Treasury. But the opening effort may not have satisfied state regulators who are trying to push their own GENIUS-related regulations, according to a Tuesday letter from the lawmakers, led by Republican Senator Cynthia Lummis, chair of the Senate Banking Committee's crypto subcommittee."Treasury’s finalized principles for assessing whether state regimes are substantially similar to the federal regulatory framework are critical in this process," according to the letter, also signed by fellow Republicans and a few Democrats, including Angela Alsobrooks, Catherine Cortez Masto and Kirsten Gil…

U.S. senators urge Treasury not to leave states out of GENIUS Act stablecoin process

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