State regulators were sidelined in the U.S. Treasury Department’s efforts to implement the new U.S. stablecoin law, according to several senators from both parties, who insist that states must have an explicit process to prove their oversight and standards are on par with federal regulators.
The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act to regulate stablecoin issuers is being translated into regulations across several federal financial agencies, including the Treasury Department. But the opening effort may not have satisfied state regulators trying to push their own GENIUS-related regulations, according to a Tuesday letter from lawmakers led by Republican Sen. Cynthia Lummis, chair of the Senate Banking Committee’s crypto subcommittee.
“Treasury’s final principles for assessing whether state regimes are substantially similar to the federal regulatory framework are critical in this process,” according to the letter, which is also signed by other Republicans and a few Democrats, including Angela Alsobrooks, Catherine Cortez Masto and Kirsten Gillibrand. “The proposed principles were published by the Treasury Department but did not address the timeline and procedural requirements associated with state certification.”
