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MoonPay CEO Urges Congress to Ensure Fair Competition in Stablecoin Legislation
Ivan Soto-Wright, CEO of MoonPay, has called on Congress to ensure a balanced regulatory framework for stablecoin issuers, advocating for fair competition between state and federal players. In an open letter to the Senate Banking and House Financial Services Committees, Soto-Wright emphasized the importance of preserving state regulatory authority while supporting amendments proposed by the Conference of State Bank Supervisors (CSBS) to the GENIUS and STABLE Acts.
Advocating for a Dual Federal-State Framework
In his letter, Soto-Wright raised concerns that the current drafts of the GENIUS and STABLE Acts could disproportionately favor federally regulated stablecoin issuers. He warned that such legislation might marginalize state-licensed entities, potentially stifling competition and innovation within the industry.
“Without these amendments, MoonPay fears that legislation may inadvertently result in undue burden and outsized authority by federal regulators,” Soto-Wright wrote.
MoonPay, a major player in the cryptocurrency space with 46 state money transmitter licenses and a user base of over 30 million customers, strongly supports maintaining viable state pathways for stablecoin issuers. The company argues that a dual federal-state framework is essential to fostering innovation, protecting consumers, and ensuring a competitive market.
Key Recommendations from CSBS
Soto-Wright endorsed several recommendations from the CSBS aimed at creating a level playing field for state and federal regulated payment stablecoin issuers (PSIs). These include:
- Removing provisions that impose stricter rules on state-regulated PSIs in other states.
- Eliminating redundant Treasury recertification requirements that create unnecessary regulatory hurdles.
- Narrowing federal preemption powers to prevent the Office of the Comptroller of the Currency (OCC) from overriding critical state consumer protections.
These recommendations align with MoonPay’s belief that both state and federal regulators should have a role in overseeing stablecoin issuers, ensuring “genuine parity” between the two frameworks.
The Role of Stablecoins in the Digital Economy
Soto-Wright described stablecoins as a vital tool for maintaining U.S. dollar dominance in the digital economy. However, he cautioned that unless the GENIUS and STABLE Acts are amended to support fair competition, they could inadvertently hinder technological progress, limit consumer choice, and undermine safeguards already established at the state level.
The GENIUS and STABLE Acts represent an effort to establish a comprehensive regulatory framework for stablecoins, a rapidly growing segment of the cryptocurrency market. As regulators work to finalize these bills, MoonPay has positioned itself as an advocate for balanced legislation that promotes innovation while protecting consumers.
MoonPay’s Investments in Stablecoin Infrastructure
To bolster its capabilities in the stablecoin space, MoonPay has recently made strategic acquisitions, including Helio and Iron.xyz. These investments underscore the company’s commitment to building robust stablecoin infrastructure and contributing to the broader adoption of digital assets.
MoonPay remains committed to collaborating with lawmakers to shape legislation that ensures fair competition, fosters innovation, and upholds consumer protections in the evolving cryptocurrency landscape.
