A bipartisan band of senators-those weary travelers of the American legislative steppe-has appealed to the mighty Treasury Department, begging it not to trample the fragile authority of state regulators as it forges the final rules of the GENIUS Act. One can almost picture them, frostbitten and determined, clutching their letter like a samizdat manuscript smuggled past the watchful eyes of bureaucratic sentinels.
the certification process. Treasury’s proposed principles, they said, were as vague as a winter horizon in the Gulag-no clear timelines, no procedural steps, only uncertainty drifting like snow over states trying to align their laws with the federal framework.
The senators urged Treasury to issue written guidance explaining how states may apply, how reviews will unfold, and when certification decisions will be rendered. They insisted the process must not become a “one-time window,” as if the federal government were offering a brief sale on regulatory freedom-today only, no returns.
They also noted that state legislatures operate on wildly different schedules; some convene only every two years, presumably after thawing out from the previous session. States, they argued, must be allowed to seek certification when their frameworks are ready-not merely when Washington feels inspired.
GENIUS Act gives smaller issuers a state option
The GENIUS Act grants stablecoin issuers with no more than $10 billion in outstanding issuance the option to choose state regulation-provided the state’s regime resembles the federal one closely enough to avoid suspicion. Treasury said in April that its proposal marked the first step toward implementing this state-level regime.
This threshold effectively reserves the state option for smaller issuers. Giants like Tether’s USDt, USDC, and USDS loom above the $10 billion line, while smaller stablecoins may find refuge under state supervision-assuming their regulators survive the certification gauntlet.
Rulemaking moves into final stage
Treasury opened public comments on the proposed state-level principles in April, with a 60‑day window ending in early June. The senators’ letter arrived after the window slammed shut-fashionably late, like a bureaucrat arriving to a meeting with no intention of apologizing.
They asked Treasury to confirm that certification will remain available on an ongoing basis, not just during the first year of implementation. After all, even in the harshest systems, hope must be allowed to flicker.
Meanwhile, Treasury continues crafting separate GENIUS Act rules for illicit finance controls. These would classify permitted stablecoin issuers as financial institutions under the Bank Secrecy Act, requiring sanctions compliance programs-because nothing says innovation like more paperwork.
New York’s Department of Financial Services has proposed updates to its stablecoin rules to align with the GENIUS Act, hoping to maintain oversight if the state earns federal certification. Hyperliquid and Paradigm have asked Treasury to narrow proposed AML and sanctions duties, while State Street has launched a stablecoin reserve money market fund tailored to the GENIUS framework. Even the FDIC, poor soul, faces GAO pressure over blockchain risk coordination.
Thus the saga continues-states, federal agencies, and stablecoin issuers all circling one another like wary wolves in a frozen clearing, each hoping the others will blink first.
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2026-06-17 07:42