Crypto Drama: When State Stablecoins Fight Federal Overlords 😲

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So, picture this: under what was supposed to be President Trump’s encore, cryptoland is suddenly buzzing like a caffeinated squirrel. Stablecoins, those digital dollars that want to seem stable (but who’s really checking?), have finally gotten some love—if by “love” you mean a legislative cage match.

Enter Ivan Soto-Wright, MoonPay’s CEO and crypto’s version of your slightly neurotic but well-meaning uncle, waving his arms and pleading for the little guy—the state-regulated stablecoin issuers—to get a fair shot. Because, apparently, the feds want all the snacks.

Federal Favoritism? More Like Stablecoin Seniority Wars

Ivan penned a letter, probably with a dramatic flair reminiscent of a soap opera script, to the Senate Banking Committee and House Financial Services Committee. His message? Don’t box out the states. It’s a bit like saying, “Hey, can the big kids share the sandbox?”

Thanks to Fox Journalist Eleanor Terret for keeping score: Two major bills, the House’s STABLE Act and the Senate’s GENIUS Act, are duking it out to decide who gets to hold the crypto leash.

Ivan’s main gripe? The bills fancy the federal Payment Stablecoin Issuers (PSIs) like they’re the prom kings, while state players get stuck with a participation trophy. He put it plainly:

“As currently drafted, the bill stacks the deck in favor of federal PSIs. It is essential to preserve viable state pathways… consistent with the dual federal-state regime that has enabled innovation and protected consumers for years.”

Which translates to: “Hey, don’t break what kinda-sorta works, or else we’re gonna have a crypto throwdown that nobody wins.” Meanwhile, some industry peeps fear the Office of the Comptroller of the Currency might become the crypto overlord, turning stablecoins into mere pawns.

Together with the Conference of State Bank Supervisors (CSBS), Soto-Wright is rallying for amendments that won’t turn this into a federal monopoly party. Spoiler: CSBS isn’t thrilled about the current plan either; their letter basically said, “Either fix this or goodbye state competition.”

Upcoming Congressional Crypto Soap Opera

Meanwhile, market sage Ron Hammond (because every drama needs a wise old oracle) tweeted that the House Financial Services Committee is gearing up for the STABLE Act showdown.

This legislation hopes to give stablecoins a proper playground, hopefully with bipartisan cheers rather than groans. The Senate already passed their GENIUS Act version with an 18-6 vote, proving even politicians can sometimes agree on something confusing. Now, the puzzle pieces have to fit—two bills, one Congress, and hopefully no blockchain blockchain.

Stablecoin legislative battle graph

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2025-04-20 08:17