Senators Push Treasury to Keep States Involved in GENIUS Act Stablecoin Oversight

Highlights:

• U.S. senators asked the Treasury to keep states involved in stablecoin regulation under the GENIUS Act.
• The senators want clear rules for how states can approve their own stablecoin oversight systems.
• Lawmakers warned that strict deadlines could block states from joining future stablecoin regulation efforts.

A group of U.S. senators has urged the Treasury Department to keep states involved in stablecoin regulation under the GENIUS Act. In a June 16 letter, the senators asked Treasury Secretary Scott Bessent to give states clear rules for approving their own stablecoin oversight systems. Senator Cynthia Lummis’s office released the letter. Senators Cynthia Lummis, Kirsten Gillibrand, Pete Ricketts, Catherine Cortez Masto, Kevin Cramer, Angela Alsobrooks, and Bill Hagerty signed the letter.

The GENIUS Act became law last July. This legislation created a comprehensive federal framework for the payment of stablecoins. Section 4(c) of the law specifically allows individual states to create and certify their own regulatory regimes for these digital assets.

However, the senators argue that the Treasury Department has not yet provided a clear timeline or procedural guidance for this state certification process. This lack of clarity is creating uncertainty for state lawmakers who are currently drafting their own stablecoin legislation.

🚨GENIUS ACT: U.S. SENATORS WANT STATES TO REGULATE STABLECOIN ISSUERS

Senators are urging the Treasury not to centralize all stablecoin oversight and to share role to states when applying the GENIUS Act.

Under the law, issuers under $10B could be regulated by states if their… pic.twitter.com/WYv921szxg

— Coin Bureau (@coinbureau) June 17, 2026

Lawmakers Want States to Stay Involved in Stablecoin Oversight

The senators said Congress designed the GENIUS Act to keep both federal and state regulators involved in financial oversight. This is known as the dual banking system. It allows financial firms to operate under either federal supervision or state supervision.

In the letter, the senators said many states are already working on rules to follow the GENIUS Act. But they argued that the Treasury has not clearly explained how states can get their stablecoin rules certified.

They also pointed to Treasury’s proposed principles from April 3. The senators said those principles did not give states a clear timeline or step-by-step process for certification. Because of that, state regulators may not know exactly what they need to do. The lawmakers warned that unclear rules could create problems later. They said Treasury should not use the certification process in a way that prevents states from joining once their rules are ready.

Lawmakers Oppose a One-Time Approval Window

The senators also asked Treasury not to create a one-time certification window. They said some states may need more time to pass or update their laws. State legislative schedules vary across the country. Some state legislatures do not meet every year. Because of this, not every state can move at the same speed.

The senators said states should be able to apply when they are ready. They argued that an ongoing process would be fairer and more practical. They also pointed to the GENIUS Act’s annual recertification rule. In their view, this shows that certification should continue over time. It should not end after one early deadline.

The senators said clear Treasury guidance would help states, regulators, and stablecoin issuers. They also said it would support competition and innovation in the payment stablecoin market.