Donald Trump · U.S. Treasury · Republicans · Cynthia Lummis · Cointelegraph
Senators urge Treasury to ensure state authority in GENIUS application
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A bipartisan group of US senators told the Treasury that its application of stablecoin laws should be done in a way that “preserves and promotes State participation.”
Key facts
- Currently, that would mean all stablecoins but three, Tether (USDt), USDC (USDC) and USDS (USDS), formerly Dai (DAI), could be regulated by the states, as all have a market value above $10 billion
- President Donald Trump signing the GENIUS Act in July 2025
- The GENIUS Act allows issuers that have a stablecoin with a market value of $10 billion or less to be regulated by a state authority if that state has laws largely similar to the bill
- Republican Senators Bill Hagerty, Kevin Cramer and Pete Ricketts, along with Democratic Senators Kirsten Gillibrand, Angela Alsobrooks, and Catherine Cortez Masto, also signed the letter
Summary
A bipartisan group of US senators told the Treasury that its application of stablecoin laws should be done in a way that “preserves and promotes State participation.” A bipartisan group of US senators led by Republican Senator Cynthia Lummis has urged the Treasury to ensure that state authorities are given the ability to regulate stablecoin issuers as the department considers how to implement the GENIUS Act. In a letter to Treasury Secretary Scott Bessent on Tuesday, the lawmakers said it was critical that the Treasury implement a section of the law giving a pathway for certain issuers to be regulated by the states “in a manner that preserves and promotes State participation.” The GENIUS Act allows issuers that have a stablecoin with a market value of $10 billion or less to be regulated by a state authority if that state has laws largely similar to the bill.