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 supported the Conference of State Bank Supervisors (CSBS) and its 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 at the expense of 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 aligns with the CSBS's concerns that the current drafts could consolidate too much authority within the federal government, particularly under the Office of the Comptroller of the Currency, thereby limiting the ability of state-regulated firms to compete nationally.

MoonPay, which operates under 46 state money transmitter licenses and serves over 30 million users, exemplifies how digital asset firms can successfully navigate existing state regulatory frameworks. The company has recently expanded its stablecoin payments infrastructure through acquisitions, further demonstrating the viability of state-regulated operations. Soto-Wright's letter underscores the need for a competitive, safe, and consumer-first market, urging lawmakers to amend the bills to ensure an equal playing field for all stablecoin issuers.

The push for state-federal parity in stablecoin regulation comes as Congress prepares to debate stablecoin legislation in the coming weeks. Industry stakeholders have been vocal about the importance of not overlooking the role of state regulators in shaping the future of U.S. stablecoin oversight. Soto-Wright's letter is part of a growing chorus of industry voices advocating for a balanced regulatory approach that recognizes the contributions of both federal and state authorities.