Both senators, led by Lummis, urged the U.S. Treasury Department to retain state-level stablecoin supervision under the GENIUS Act

On June 17, a bipartisan Senate group led by Cynthia Lummis sent a letter to U.S. Treasury Secretary Scott Bessent, requesting the Treasury Department to safeguard states 'regulatory authority over some stablecoin issuers when formulating implementation rules for the GENIUS stablecoin Act. The GENIUS Act was signed into law last year, establishing a federal regulatory framework for stablecoins in the United States, requiring stablecoins to be fully backed by U.S. dollars or similar highly liquid assets, and requiring issuers with market values of more than US$50 billion to undergo annual audits, and setting overseas issuance rules. The bill allows issuers of stablecoins with market capitalizations of no more than $10 billion to be regulated at the state level, as long as the relevant state regulatory regimes are "substantially similar" to federal requirements. Senators believe that the rules previously proposed by the Treasury Department do not clarify the timetable and standards for application, review and certification of state regulatory systems, creating uncertainty for states. The letter pointed out that the legislative cycles of different states vary greatly, and some states even adopt a biennial legislative cycle. Therefore, a flexible and continuously open certification mechanism is needed to ensure that states can apply for certification when needs arise, rather than due to time mismatch. Limit innovation and competition.