What Did MoonPay CEO Soto-Wright Say?

In a post on X dated April 18, Soto-Wright urged Congress to “leave a path for state-regulated issuers to remain in the system.” His remarks came amid discussions on two bills: the GENIUS Act in the Senate and the STABLE Act in the House.

Soto-Wright emphasized, “Although the crypto industry has long demanded federal regulation, it’s been the state regulators who have truly provided regulatory clarity, ensured consumer protection, and enabled the sector’s growth.” He underlined that the role of state authorities should not be underestimated.

As federal legislation nears completion, the MoonPay CEO stressed the importance of maintaining a viable route for permitted stablecoin issuers (PSIs) under state oversight. According to him, these issuers should be treated on equal terms with their federally regulated counterparts.

Similar Message from State Bank Supervisors

The Conference of State Bank Supervisors (CSBS) echoed similar concerns, sending a letter to the House Financial Services Committee on April 1, advocating for a continued state-based regulatory framework. Both the Senate Banking Committee and the House Financial Services Committee advanced the respective bills in March and April, moving them toward a full chamber vote.

The STABLE Act in the House, modeled after the GENIUS Act in the Senate, aims to regulate payment stablecoins by limiting them to “permitted payment stablecoin issuers,” while allowing participation from “state-qualified” entities. However, Soto-Wright argued that the GENIUS Act “stacks the deck” in favor of federal regulators and designates the Federal Reserve as the sole federal regulator for all state PSIs.

Trump-Backed Stablecoin Project Sparks Controversy

While it remains unclear whether these bills will pass both chambers of Congress, a new stablecoin initiative backed by U.S. President Donald Trump and his family has stirred further debate. The project has raised concerns about potential conflicts of interest, which could complicate the legislative process.

Launched in September 2024 by a firm called World Liberty Financial, the initiative has already attracted around $600 million in investment, mostly through token sales. Major backers include Tron founder Justin Sun, market maker DWF Labs, venture firm Oddiyana Ventures, and investment platform Web3Port. As of March 24, the project’s stablecoin, named USD1, was not yet tradable.

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