Senators Urge Treasury to Clarify Stablecoin Oversight Rules for States

A bipartisan group of U.S. senators is pressing the Treasury Department to provide clearer guidance on how state regulators can participate in the implementation of the newly enacted stablecoin law, arguing that states have been left uncertain about their role in the regulatory process.

The lawmakers, led by Senator Cynthia Lummis, chair of the Senate Banking Committee’s digital assets subcommittee, sent a letter to Treasury Secretary Scott Bessent expressing concerns about the rollout of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The legislation establishes a regulatory framework for stablecoin issuers and is currently being translated into detailed rules by several federal agencies, including the U.S. Treasury.

According to the senators, Treasury’s recently finalized principles for determining whether state regulatory frameworks are “substantially similar” to federal standards fail to outline key procedures and timelines for state certification. Without clear guidance, state regulators may struggle to demonstrate that their oversight regimes meet federal requirements.

The letter was signed by lawmakers from both parties, including Senators Angela Alsobrooks, Catherine Cortez Masto, and Kirsten Gillibrand. The group warned that the lack of a defined certification process could effectively prevent states from participating in stablecoin supervision in the future.

The senators noted that stakeholders have raised concerns that the current framework leaves too much room for interpretation, creating uncertainty for state agencies seeking approval under the GENIUS Act. They emphasized that Treasury’s assessment process should be transparent, predictable, and accessible.

To address these concerns, the lawmakers are urging the Treasury Department to issue written procedural guidance that clearly explains the application, review, and certification process for state regulatory regimes. They also called for defined timelines and flexible requirements that account for the varying legislative schedules and regulatory structures across different states.

The request comes as Congress continues to advance broader cryptocurrency legislation, including the Digital Asset Market Clarity Act, which remains under consideration in the Senate. The outcome of Treasury’s guidance could play a significant role in shaping how federal and state authorities share responsibility for stablecoin regulation in the United States.