Six senators from both sides of the aisle have written to Treasury Secretary Scott Bessent regarding its rulemaking for State-regulated stablecoins under the GENIUS Act. Under the legislation, Treasury is responsible for rulemaking to assess whether State regulations are “substantially similar” to the federal framework.
The senators are particularly concerned that Treasury’s draft rules don’t cover process and timing and note that Congress intended to support a State path for GENIUS stablecoin regulation. State regulators are worried that the absence of process details could imply a one-time window by which States should submit their proposed rules.
The concern is raised because the GENIUS Act says that a state regulator shall submit a certification “not later than 1 year after the effective date” of the GENIUS Act. That translates to 18 January 2028 at the latest, but could be earlier if federal regulators finalize rules before 18 January 2027. It’s not mentioned in the letter, but the federal finalization date is also vague, because it’s unclear whether it means a single federal regulator finalizes its rules or all of them. “Interpreting the certification timeline as a hard cutoff would likely foreclose future State participation, undermining Congress’s intent and reducing regulatory optionality in a rapidly evolving market,” the senators wrote.
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