MoonPay CEO Ivan Soto-Wright Asks Congress to Keep State Regulators Involved in Stablecoin Regulation

YEREVAN (CoinChapter.com) — MoonPay CEO Ivan Soto-Wright asked U.S. lawmakers to keep state regulators involved in stablecoin regulation.

Yerevan (CoinChapter.com) – Ivan Soto-Wright, CEO of MoonPay, urged U.S. lawmakers to keep state regulators involved in stablecoin regulation, reacting to two active bills.

In an April 18 post on X, Soto-Wright asked Congress to “keep state-regulated issuers in the game.” He was referring to the GENIUS Act in the Senate and the STABLE Act in the House.

Both bills are now being reviewed by Congress. The Senate Banking Committee and the House Financial Services Committee passed the proposals in March and April, respectively. These votes moved the bills to the next stage for a full vote in both chambers.

State regulators have provided “regulatory clarity and supervision” for cryptocurrency firms for several years, the MoonPay CEO said. He asked for state regulators to remain equal to federal regulators who meet the requirements in the bills.

“It is essential to preserve viable state pathways for PSIs [permitted stablecoin issuers],” he said.

Soto-Wright shared a letter dated April 17 addressed to congressional leaders. The letter stated that the GENIUS Act grants the Federal Reserve complete authority over all state-level permitted stablecoin issuers. This, he said, “stacks the deck” against state regulators.

STABLE Act Recognizes State-Level Issuers

The STABLE Act includes a provision that permits “state qualified” permitted stablecoin issuers. This implies that, under certain conditions, companies can operate with state oversight. However, the GENIUS Act favors federal regulators, primarily the Federal Reserve, to have full authority.

The Conference of State Bank Supervisors (CSBS) also supported state institutions in retaining their oversight roles. In an April 1 letter to the House Financial Services Committee, CSBS officials said state agencies must retain their oversight powers.

Soto-Wright agreed with this view, adding that state regulators had taken the lead in the absence of federal rules.

Trump-Backed Stablecoin Spurs Attention

A separate stablecoin, USD1, backed by former President Donald Trump’s family, is also drawing attention in the industry. World Liberty Financial launched the stablecoin project in September 2024. As of March 24, 2025, the USD1 stablecoin was not yet available for trading.

According to the company, World Liberty Financial raised $600 million. Among the investors are Tron founder Justin Sun, DWF Labs, Oddiyana Ventures, and Web3Port. The project is currently under review due to concerns over potential conflicts of interest arising from the Trump family’s involvement in stablecoin-related lawmaking.

No legal actions have been announced concerning the USD1 project. However, the connection between the administration and stablecoin regulation has become a subject of public and legislative focus.

MoonPay Seeks Fair Rules for All Permitted Stablecoin Issuers

In his letter, Soto-Wright stated that any new legislation should treat state and federal regulators equally. He cautioned that granting the Federal Reserve sole authority would eliminate state-level paths for permitted stablecoin issuers.

Under the GENIUS Act, the Federal Reserve would become the primary regulator of all stablecoin issuers, including those already approved by state authorities. In contrast, the STABLE Act permits “state qualified” issuers to continue operating under state supervision.

Both bills are still being discussed, and industry leaders and public officials continue to submit letters and comments.

The MoonPay CEO asked lawmakers to avoid removing state-level options when establishing rules for permitted stablecoin issuers.