MoonPay CEO Urges Congress to Preserve State Authority in Stablecoin Regulation

As U.S. lawmakers move closer to establishing a national framework for stablecoin regulation, Ivan Soto-Wright, CEO of crypto payments firm MoonPay, is urging Congress to maintain a role for state-level oversight. In an April 18 post on X (formerly Twitter), Soto-Wright emphasized the importance of keeping “state-regulated issuers in the game” as the House and Senate consider two landmark bills on payment stablecoins.

Currently under debate are the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in the Senate and the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act in the House. Both aim to create a clear regulatory structure for payment stablecoins, but they differ on the balance of authority between federal and state regulators.

Soto-Wright warned that the GENIUS Act, in particular, could unfairly favor federally permitted stablecoin issuers by positioning the Federal Reserve as the sole regulator of state-permitted issuers (PSIs). He argued this would effectively sideline experienced state regulators who have provided "regulatory clarity and supervision" for years in the absence of federal rules.

“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 wrote. “It is essential to preserve viable state pathways for PSIs that meet the standards set out in GENIUS and STABLE.”

April 17 letter from MoonPay CEO to congressional leadership. Source: Ivan Soto-Wright

His stance echoes that of the Conference of State Bank Supervisors (CSBS), which expressed similar concerns in an April 1 letter to House Financial Services Committee leadership. Both congressional committees — Senate Banking and House Financial Services — have advanced the bills out of committee, paving the way for full floor votes.

The House’s STABLE Act includes provisions for “state-qualified” permitted payment stablecoin issuers, creating a dual pathway for oversight. However, Soto-Wright believes the GENIUS Act could undermine this balance by concentrating power federally and limiting state flexibility.

Complicating the legislative push is the emergence of a Trump family-backed stablecoin project. World Liberty Financial, launched in September 2024, has introduced its own USD1 stablecoin and raised around $600 million, primarily from token sales. Notable investors include Tron founder Justin Sun, DWF Labs, Oddiyana Ventures, and Web3Port.

Despite its high-profile backers, the USD1 stablecoin was not tradable as of March 2025, and concerns around potential conflicts of interest have been raised. These controversies may further complicate bipartisan efforts to pass comprehensive stablecoin legislation in a divided Congress.

As the bills move toward potential floor votes, the debate highlights a fundamental question: Should stablecoin regulation be centralized under federal control, or should states continue to play a key role in shaping the future of digital finance in the U.S.?