MoonPay CEO, Ivan Soto-Wright, urges US lawmakers to maintain state authority over stablecoins as federal regulations are being considered. Soto-Wright emphasized the importance of state-regulated issuers in stablecoin regulation, advocating for a balance between state and federal oversight. The proposed GENIUS and STABLE Acts in the Senate and House are under scrutiny. Soto-Wright highlighted the crucial role of state regulators in providing consumer protection and fostering industry growth. The Conference of State Bank Supervisors echoed similar sentiments in a letter to the House Financial Services Committee. Both bills have advanced in committees, setting the stage for a full vote. The STABLE Act, mirroring the GENIUS Act, restricts payment stablecoins to permitted issuers. Soto-Wright expressed concerns that the GENIUS Act favors federal regulators over state ones. The outcome of the bills’ passage remains uncertain. Meanwhile, a Trump family-backed venture, World Liberty Financial, launched its stablecoin despite allegations of conflicts of interest. The venture has attracted significant investments and aims to establish its USD1 stablecoin. World Liberty Financial’s stablecoin was non-tradable as of March 24. The project received backing from notable figures like Justin Sun and DWF Labs. The potential implications of the venture on the stablecoin market are subject to ongoing scrutiny.
