Senators from both parties urge the US Treasury Department to retain state-level stablecoin regulatory authority under the GENIUS Act Odaily Planet Daily News: A bipartisan group of senators led by Cynthia Lummis has sent a letter to US Treasury Secretary Scott Bessent, requesting that the Treasury maintain state regulatory authority over some stablecoin issuers when developing implementation rules for the GENIUS stablecoin bill. The GENIUS Act was signed into law last year, establishing a regulatory framework for federal stablecoins in the United States. It requires stablecoins to be fully backed by US dollars or similar highly liquid assets, and requires issuers with a market value exceeding $50 billion to undergo annual audits, while also setting rules for overseas issuance. The bill allows stablecoin issuers with a market value not exceeding $10 billion to be regulated at the state level, as long as the relevant state regulatory system is "substantially similar" to federal requirements. Senators believe that the rules previously proposed by the Treasury Department did not specify the timeline and standards for applying, reviewing, and certifying state-level regulatory systems, which brought uncertainty to each state. The letter pointed out that there are significant differences in legislative cycles among different states, with some states even adopting a biennial legislative cycle. Therefore, a flexible and continuously open certification mechanism is needed to ensure that states can apply for certification when demand arises, rather than limiting innovation and competition due to time mismatches.