U.S. senators press Treasury to preserve state role in GENIUS stablecoin rules

A bipartisan group of U.S. senators is urging the Treasury Department to make sure state authorities are not sidelined as it carries out the new stablecoin framework tied to the GENIUS Act. In a letter described in reports from Cointelegraph and CoinDesk, the lawmakers said the application of the law should be handled in a way that preserves and promotes state participation rather than centralizing oversight entirely at the federal level.

The request reflects an early push to shape how the stablecoin regime will work in practice. While the GENIUS Act is intended to establish a formal process for supervising stablecoins, the senators are pressing Treasury to ensure that states have a clear path to remain involved in that process. According to the reports, the lawmakers want the department to create a framework in which states can demonstrate that they are able to supervise stablecoin activity.

CoinDesk said the effort is being led by Republican Senator Cynthia Lummis, who has been a prominent voice on digital asset policy. The same report said the senators want Treasury to make sure states receive a process that allows them to show they can oversee stablecoins responsibly. Cointelegraph similarly reported that the bipartisan group asked for the law to be applied in a way that preserves state authority.

The appeal comes at a time when stablecoin regulation remains a central policy issue for U.S. lawmakers and regulators. Stablecoins, which are designed to maintain a steady value, have drawn significant attention from policymakers because of their role in digital asset markets and payments. The debate over how they should be supervised has often centered on the balance between federal standards and state-level oversight, and the latest letter shows that question is still unresolved as Treasury begins to shape implementation.

By emphasizing state participation, the senators appear to be seeking a dual-track structure rather than a purely federal model. The reports indicate that the lawmakers do not want the new framework to shut out state regulators who already supervise parts of the financial sector. Instead, they are asking Treasury to build an application process that recognizes state authority and gives states a meaningful role in determining whether they can oversee stablecoins under the law.

The move also suggests that implementation of the GENIUS Act is now becoming as important as the legislation itself. Even after a law is passed, the details of how regulators interpret and apply it can shape which institutions are able to operate, which standards they must meet, and which agencies or authorities are involved. In this case, the senators are pushing Treasury to make those decisions with an eye toward maintaining the role of states in the supervisory structure.

For the stablecoin sector, the outcome of this process could help define the regulatory landscape that firms face in the United States. The reports do not give a timeline for Treasury’s response or specify the full contents of the lawmakers’ letter, but they make clear that congressional attention is already focused on the practical mechanics of the new regime. The central point from the senators is straightforward: as Treasury applies the GENIUS Act, state participation should remain part of the framework rather than being pushed aside.