Seven bipartisan U.S. senators, according to CoinPost, sent a letter in mid-June to Treasury Secretary Scott Bessent asking the Treasury to clarify the timeline and specific procedures for “state-level stablecoin regulatory regime certification” under the GENIUS Act. The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act, Senate Bill S.394) is the core legislative framework currently governing U.S. payment stablecoins. It is designed to allow stablecoin issuers below a certain market-cap threshold to operate under qualifying state-level regulation rather than being uniformly subject to federal oversight. The problem: which state’s regulatory regime is “equivalent” to the federal standard, who certifies it, and what process applies—this mechanism still lacks actionable rules, and that is exactly the gap the senators are asking Treasury to fill.
It’s worth clarifying the current legislative status to avoid confusion: as of this writing, the GENIUS Act is in the later stages of the congressional legislative process (for the specific provisions and signing status, refer to the S.394 progress page on Congress.gov). This letter came about precisely because “the bill’s framework has taken shape, but the implementation procedures remain blank”—the senators are concerned that a gap could open up in the certification step between state and federal tracks, leaving issuers without clear guidance. This is not a case of “the law is already in effect but poorly enforced,” but rather “legislation is nearing completion, and Treasury needs to fill in the implementation details soon.” If readers come across any report describing the GENIUS Act as “already signed into law,” please verify against the official congressional progress page.
Practical impact on USDT cardholders
The bottom line first: this is news about regulation at the stablecoin-issuance level, not about the virtual card-issuance level. The way a USDT virtual card works is: you top up ₮ into the card account → the issuer converts it to fiat → Visa/Mastercard clears the transaction. The GENIUS Act governs stablecoin issuers (Tether, Circle, etc.)—that layer is two steps removed from the card in your hand, separated by both the issuer and the clearing network.
Broken down by scenario:
- Users holding Asia-route virtual cards (such as the Asia Elite variant of MPCard): This letter focuses on the U.S. state/federal certification process, which has no direct bearing on Asia-Pacific issuing BINs or Asia-Pacific accounts. No action is needed in the short term.
- Users primarily on USDC whose card accounts are tied to U.S. regulation (a typical example being Coinbase Card): Circle, as the USDC issuer, is highly sensitive to the U.S. regulatory framework. Once the state/federal certification details under the GENIUS Act are finalized, this could affect USDC’s compliance disclosures and operating costs, which could eventually feed into card fees. But this transmission happens over months, not overnight.
- Users holding dual-currency cards that support both ₮ and USDC (such as RedotPay): Maintain the status quo—there’s no need to adjust currency allocation because of this letter.
Timeline expectations:
| Window | Expectation |
|---|---|
| 7 days | No perceptible change. Treasury will not respond in real time to a single letter |
| 30 days | Watch for whether Treasury publicly commits to a certification timeline |
| 90 days | If draft rules emerge, USDC-based issuers may update their compliance terms |
Historical comparison: how this differs from MiCAR and the 2023 USDC depeg
Placing this within regulatory history makes it clearer.
- Similarity with the EU’s MiCAR: Both follow the typical path of “framework legislation is in place, implementation details are filled in over stages.” After MiCAR’s main provisions took effect in stages in 2024, European countries were still supplementing local licensing procedures—the current “certification procedure gap” in the U.S. is the same kind of institutional growing pain.
- Difference from MiCAR: MiCAR operates at a single EU-wide level, while the U.S. has a dual federal-plus-50-states structure. Determining “which state qualifies” is itself a problem that doesn’t exist under MiCAR. That’s precisely why the senators are specifically demanding procedural transparency.
- Difference from the March 2023 USDC depeg: That event was triggered by the collapse of Silicon Valley Bank and reserve-bank risk—a “market/liquidity event.” USDC briefly fell to 0.87 within 48 hours before repegging. This current matter is a “regulatory procedure event”—there is no depegging or reserve risk involved, and it has no immediate effect on the purchasing power of ₮/USDC balances held on cards.
In short: MiCAR taught the market that “the details will be late, but they will come”; the 2023 depeg taught the market that “reserve transparency is what really matters.” This letter falls into the former category and has nothing to do with the latter—don’t mistake a regulatory-procedure story for a stablecoin risk signal.
Regulatory and compliance boundaries
For Chinese-speaking readers, the more practical boundary is this: whether you can legally hold and use a USDT card depends on your place of residence, not on the certification procedure under the U.S. GENIUS Act.
- Within the United States: Both stablecoin issuance and card services are within the regulatory scope, and this will become clearer once the GENIUS Act is finalized.
- Asia-Pacific hubs such as Hongkong / Singapore: Each has its own stablecoin and VASP frameworks, advancing in parallel with the U.S. process but not equivalent to it. Hongkong readers can refer to the Hongkong compliance guide, and Singapore readers to the Singapore compliance guide.
- Mainland China: Related activities remain clearly prohibited, and no progress on the U.S. GENIUS Act changes that. See the Mainland China compliance note for details.
Right now, the state certification procedure under the GENIUS Act sits in a gray zone of “framework set, procedure pending”—it’s not prohibited, but no actionable, clear rule has yet formed. That is exactly why the senators are asking Treasury to fill the gap as soon as possible.
Milestones worth watching next
- Whether Treasury publicly responds to this letter—if the response includes a concrete timeline, that’s the strongest signal.
- Status updates for S.394 on Congress.gov—this is the primary source for tracking where the legislation stands.
- Circle’s official compliance announcements—as the USDC issuer, Circle is the most sensitive to U.S. procedural developments, and its disclosures will precede any changes in card fees.
- The next relevant congressional hearing—whether any senator flags the “state certification process” as a key line of questioning.
Editorial recommendations
- Users holding MPCard Asia-route cards or other Asia-Pacific BIN cards: no action needed. This news has no direct bearing on the Asia-Pacific issuing chain.
- Users heavily reliant on USDC whose card services are tied to U.S. regulation: Add Circle’s official announcements and the S.394 progress on Congress.gov to your watchlist. No adjustment is needed within 30 days; within 90 days, watch for updates to issuers’ compliance terms.
- Users planning to apply for a new U.S.-related card: There’s no need to delay because of this letter, but it’s advisable to prioritize products with clear currency and routing logic and transparent compliance disclosures. You can also cross-reference the Top 5 recommended cards for 2026 before deciding.
- New readers trying to understand how USDT cards actually work: Start with What is a U card—it’s more useful than chasing any single piece of regulatory news.
In one sentence: this is a procedural development on the issuance side, not a risk event on the card side. Understand who it actually governs, and you won’t be alarmed by headlines mentioning “Treasury” or “letter.”