Ivan Soto-Wright, CEO of MoonPay, has called on Congress to make sure that the upcoming stablecoin legislation does not favor federally regulated issuers over their state-regulated counterparts in an open letter.
The letter has been addressed to the key members of the Senate Banking Committee and the House of Committee on Financial Services. With this letter the CEO is emphasizing the need for parity and fair competition in the ever-changing digital space.
Advocating for Parity in Stablecoin Rules
In the letter, the CEO is urging the lawmakers to adopt provisions in the GENIUS Act and the STABLE Act that would allow state-regulated payment stablecoin issuers (PSIs) to compete on the same footing as the federally regulated entities.
Soto-Wright’s letter has been sent on April 17, 2025, and from the letter it can be seen that the CEO is commending the efforts Congress has made till date but warns that the current draft is leaning more in favor of federal PSIs.
The CEO believes that the current draft is favoring federal regulators because it is imposing stricter standards on state-regulated issuers seeking to operate over the entire nation.
“Stablecoins provide democratized and decentralized access to the U.S. Dollar. They can be sent and received in seconds, across the world, at extremely low fees,” Soto-Wright wrote. This highlights that there is a transformative potential with stablecoins for the broader economy.
The CEO has also stressed that the state regulators have a proven track record of consumer protection and oversight, and that their continued involvement is necessary for promoting innovation and maintaining regulatory standards.
Key Recommendations from Conference of State Bank Supervisors (CSBS)
The letter by MoonPay CEO provides several specific recommendations from CBBS which are as follows:
- The Section 7(i) of the GENIUS Act can be amended to establish a “genuine party” so that the state PSIs can engage in the same activities and enjoy the same rights as the federal PSIs.
- Remove the $10 billion asset threshold for state regulation as it could create a significant confusion within the industry.
- Limit federal power so states can regulate consumer protection and financial stability themselves.
MoonPay’s Commitment to Consumer Protection & Innovation
MoonPay emphasizes consumer protection, holding 46 state licenses and serving 30M+ customers worldwide, and is advocating for balanced regulation that promotes innovation and competition.
“Without these amendments, MoonPay fears that legislation may inadvertently result in undue burden and outsized authority by federal regulators at the cost of consumer safety, regulatory efficiency, and a competitive market,” Soto-Wright concluded.
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