Senators Demand Clear State Certification Path for GENIUS Act Stablecoins

Overview

• A bipartisan group led by Senator Cynthia Lummis sent a letter on Tuesday, June 16, asking Treasury Secretary Scott Bessent to publish explicit, written guidance on how states can apply for certification under the GENIUS Act.
• Treasury published proposed state-level principles in April and closed a 60-day public comment period in early June, but the draft rules did not set out application steps or clear decision timelines for state certification.
• The senators warned the lack of timelines could effectively bar future state participation because state legislatures move on different schedules and some meet only every two years.
• Under the GENIUS Act, payment stablecoin issuers with no more than $10 billion outstanding may choose state supervision if their state regime is certified as substantially similar to the federal framework, a route aimed mainly at smaller issuers.
• Treasury is preparing final GENIUS Act rules, including separate proposals on anti‑money‑laundering and sanctions compliance, and the senators say publishing ongoing certification procedures now will shape whether smaller issuers remain under state oversight or fall to federal supervision.