Senators push Treasury to preserve state oversight in stablecoin rules

The June 16 letter to Treasury Secretary Scott Bessent highlights concerns that without specific timelines, the federal government may inadvertently foreclose future state participation. The lawmakers, including Kirsten Gillibrand, Bill Hagerty, and Catherine Cortez Masto, emphasize that the dual banking system relies on the active involvement of state banking agencies. They contend that the Treasury’s proposed principles lack the procedural clarity necessary for states to align their local frameworks with federal requirements.

Central to the dispute is the fear that the certification process might be treated as a single, one-time window. Because state legislatures operate on vastly different schedules—some meeting only biennially—the senators argue that states must be permitted to seek certification whenever their regulatory frameworks are ready. The GENIUS Act currently permits payment stablecoin issuers with under $10 billion in outstanding issuance to opt for state-level regulation, provided that the state regime mirrors federal standards. As the Treasury moves toward finalizing these rules following the close of the public comment period, industry players like New York’s Department of Financial Services are already working to align local oversight with the pending federal criteria.