- MoonPay CEO Ivan Soto-Wright urges Congress to maintain state-level regulatory pathways for stablecoin issuers.
- Both the STABLE Act and GENIUS Act are advancing through Congress, potentially creating a federal regulatory framework for stablecoins.
- Concerns exist about federal regulation favoring federally-regulated issuers over state-regulated ones.
Ivan Soto-Wright, the CEO of cryptocurrency payment company MoonPay, has called on U.S. lawmakers to preserve state-level regulatory options when finalizing legislation on stablecoins. In an April 18 post on X, Soto-Wright emphasized the importance of keeping "state-regulated issuers in the game" as Congress works toward establishing a federal regulatory framework for stablecoins.
The appeal comes as two major pieces of legislation—the GENIUS Act in the Senate and the STABLE Act in the House of Representatives—move closer to potential passage. Both bills have successfully advanced through their respective committees in March and April, setting up the possibility of full floor votes in both chambers.
"While the cryptocurrency industry has called for federal legislation for years, it has been these state regulators who have provided and continue to provide regulatory clarity and supervision to ensure consumer protection and enable growth in the sector," Soto-Wright stated in his message. His position mirrors that of the Conference of State Bank Supervisors (CSBS), which wrote to the House Financial Services Committee on April 1 with similar recommendations.
State vs. Federal Regulation Debate
The STABLE Act, designed as a companion to the Senate’s GENIUS Act, proposes regulating payment stablecoins by limiting them to "permitted payment stablecoin issuers," while allowing for "state qualified" ones. However, Soto-Wright expressed concern that the GENIUS bill "stacks the deck" in favor of federally-regulated issuers and positions the Federal Reserve as the "sole federal regulator for all state PSIs [permitted stablecoin issuers]."
The MoonPay CEO argues that state regulators have been crucial in providing clarity and supervision for the cryptocurrency industry while federal legislation has been developing. He believes it’s essential to "preserve viable state pathways" that place qualified state regulators on "equal footing with federal regulators."
Political Complications and Competing Interests
The legislative path forward remains unclear, as both bills still need sufficient votes to pass their respective chambers before reaching President Trump’s desk. Adding to the complexity is the fact that the Trump family has backed the launch of a stablecoin through World Liberty Financial, which launched in September 2024.
This venture has already received approximately $600 million from investors including Tron founder Justin Sun, market maker DWF Labs, venture capital firm Oddiyana Ventures, and investment platform Web3Port. According to the project, its USD1 stablecoin was not yet tradable as of March 24.
The Trump family’s involvement in a stablecoin project has raised questions about potential conflicts of interest and may complicate the legislative process for stablecoin regulation.
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