MoonPay CEO Urges Congress to Preserve State Authority Over Stablecoins

MoonPay CEO Ivan Soto-Wright has urged Congress to preserve state regulatory authority over stablecoin issuers, advocating for a balanced federal-state regulatory framework. In a letter to the leadership of the Senate Banking and House Financial Services Committees, Soto-Wright endorsed the Conference of State Bank Supervisors' (CSBS) proposed amendments to the House’s STABLE Act and Senate’s GENIUS Act. These amendments aim to ensure parity between state and federal issuers, preventing the current drafts from favoring federal regulation over existing state frameworks.

Soto-Wright emphasized that the current legislation could unfairly advantage federal Payment Stablecoin Issuers (PSIs) over state-regulated entities. He argued that maintaining viable state pathways is crucial for sustaining the dual federal-state regime that has historically fostered innovation and protected consumers. Soto-Wright's position is supported by MoonPay's own experience, operating under 46 state money transmitter licenses and serving over 30 million users, demonstrating the effectiveness of state regulatory frameworks in supporting digital asset firms.

The CSBS, in its own letter, cautioned that the current drafts could centralize too much authority within the federal government, particularly under the Office of the Comptroller of the Currency. This centralization could limit the ability of state-regulated firms to compete nationally, potentially stifling innovation and competition in the stablecoin market. Soto-Wright and the CSBS are urging lawmakers to amend the bills to ensure an equal playing field, emphasizing that such changes are essential to fostering a competitive, safe, and consumer-first market.

MoonPay's recent acquisitions of Helio and Iron.xyz further highlight the company's dedication to expanding its stablecoin payments infrastructure within the existing state regulatory frameworks. These acquisitions underscore the importance of maintaining a balanced regulatory environment that supports both state and federal oversight, ensuring that digital asset firms can continue to innovate and grow while protecting consumer interests.