Bipartisan Senators Press Treasury to Keep States in GENIUS Act Stablecoin Process

Senators urge Treasury to clarify state certification

On 16 June 2026, seven U.S. senators sent a letter to Treasury Secretary Scott Bessent. They asked Treasury to issue written procedural guidance for certifying state regulatory regimes under Section 4(c) of the GENIUS Act. That section creates a pathway for states to supervise payment stablecoin issuers. The bipartisan group included Cynthia Lummis, Kirsten Gillibrand, Catherine Cortez Masto, Angela Alsobrooks, Pete Ricketts, Kevin Cramer, and Bill Hagerty. The senators said Congress sought to preserve the dual banking system and the role of state banking agencies.

Treasury's April principles skipped the certification timeline

Treasury published proposed principles on 3 April 2026. The principles describe how Treasury will judge whether a state regime is substantially similar to the federal framework. The senators wrote that these principles did not address the timeline and procedural requirements for state certification. They said the gap creates uncertainty for states now considering their own stablecoin laws and rules. The letter asked Treasury to set out a clear application, review, and certification process.

"We have heard from stakeholders that, absent clear procedural guidance, the certification process could be interpreted or applied in a manner that effectively forecloses future participation.", 16 June 2026. — U.S. Senators, letter to Treasury Secretary Scott Bessent

Senators warn against a one-time certification window

The senators said the process should not work as a one-time window that bars future certifications. They argued that reading the certification timeline as a hard cutoff would likely foreclose future state participation. That outcome, they wrote, would undermine the intent of Congress and reduce regulatory choice in a fast-moving market. They also noted that the law requires annual recertification. That requirement, the letter said, shows certification was meant to be a continuing partnership between federal and state authorities.

GENIUS Act lets states oversee smaller issuers

The GENIUS Act sets a federal framework for payment stablecoin issuers and preserves a role for state banking agencies. According to reporting on the law, issuers with no more than $10 billion in outstanding stablecoins can choose state regulation. That option applies only when the state regime is substantially similar to the federal standard. The senators want the state pathway ready so firms that pick a state charter are not put at a disadvantage.

Tether market cap shows the stablecoin scale

The market behind these rules is large. Tether (USDT), the biggest stablecoin, held a market capitalization near $186.25 billion at the time of publication (NewsFlash, 18 June 2026). A clear certification path would shape how state regulators supervise issuers of that size. The senators said their goal is to support responsible innovation, competitive markets, and effective supervision under the dual banking system.

Senators want certification kept open over time

The senators asked Treasury to confirm that certification will stay available on an ongoing basis. They noted that state legislatures sometimes meet only every two years, so timing can vary widely. A flexible, ongoing framework would let states join as demand for charters grows. They wrote that "States must be able to develop and seek certification of stablecoin regulatory regimes as demand for these charters materializes and as legislative schedules permit."

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