In an open letter to Congress, MoonPay CEO Ivan Soto-Wright has called for a more balanced regulatory framework for stablecoins that maintains state-level oversight and avoids tilting the playing field in favor of federally regulated issuers.
The letter, addressed to the Senate Banking Committee and the House Financial Services Committee, voices concern that current drafts of the GENIUS Act and STABLE Act could marginalize state-licensed issuers and grant excessive power to federal regulators.
“Stablecoin Rules Shouldn’t Play Favorites”
Soto-Wright, whose company holds 46 state money transmitter licenses and serves over 30 million customers globally, emphasized the importance of preserving regulatory competition and innovation across jurisdictions.
“Stablecoin rules shouldn’t play favorites,” he wrote in a post on X, sharing his letter and endorsing the Conference of State Bank Supervisors (CSBS) recommendations.
The MoonPay CEO warned that without targeted amendments, the legislation could place undue burdens on state-regulated issuers, potentially discouraging new entrants and stifling innovation.
CSBS-Backed Amendments
The letter strongly supports CSBS proposals, which aim to create genuine parity between federal and state payment stablecoin issuers (PSIs). Key recommendations include:
- Eliminating redundant recertification requirements with the U.S. Treasury
- Removing provisions that subject state-regulated issuers to tougher rules across other states
- Restricting federal preemption powers that could override state consumer protection laws
Soto-Wright argued that these changes are necessary to prevent a “one-size-fits-all” federal framework that excludes or disadvantages existing state-compliant companies.
Stablecoins as a Strategic Asset
Framing stablecoins as vital tools for U.S. dollar competitiveness in the digital economy, Soto-Wright urged lawmakers to foster an inclusive and innovation-friendly regulatory approach. He pointed to MoonPay’s recent acquisitions of Helio and Iron.xyz as part of the company’s effort to build robust, compliant stablecoin infrastructure.
“Unless amended, the GENIUS and STABLE Acts could reduce competition, harm innovation, and weaken consumer protections already established at the state level,” he wrote.
Industry and Policy Implications
The debate reflects growing tension between federal consolidation and state flexibility in the crypto space. While federal regulation aims to ensure uniform standards, many in the industry fear that it could limit consumer choice and delay innovation, especially for smaller, state-licensed players.
MoonPay’s advocacy adds a major voice to the conversation, pushing for dual-track regulatory options that can coexist without conflict or duplication.
Final Thoughts
As Congress works to finalize stablecoin legislation in the coming months, the pressure is mounting to strike a balance that protects consumers, ensures clarity, and promotes fair competition. MoonPay’s call for regulatory parity underscores the broader industry’s desire for collaborative governance not centralized control.
