Senator Lummis: Time To Ditch Outdated US Payment Infrastructure For Stablecoins

• Senator Cynthia Lummis champions digital assets, especially stablecoins, for modernizing US payment infrastructure.
• The GENIUS Act for stablecoin regulation advances in U.S. Senate, aiming for clarity and innovation.
• Wyoming, Lummis’s state, is launching its own stablecoin (WYST) by July, partnering with LayerZero.

Senator Cynthia Lummis of Wyoming has placed the outdated US payment infrastructure in the spotlight, framing the rise of digital assets as a national priority. According to Lummis, current financial rails–many built in the 1970s and 1980s–have become inefficient and expensive, especially for small businesses and international transactions. 

She has argued that digital assets, particularly stablecoins, offer a faster, cheaper, and more accessible alternative, capable of operating 24/7 and completing transactions in seconds. Lummis’ position has gained renewed momentum with the Senate’s advancement of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. 

Lummis: Decades-Old Payment Rails Put U.S. Businesses at Disadvantage

Lummis noted that when a small business owner in Cheyenne tries to pay an international supplier using traditional methods, they face delays of up to 10 days and transaction fees as high as 5%. 

In contrast, stablecoins complete similar transactions in seconds, at a fraction of the cost, and operate 365 days a year. “This isn’t just inconvenient,” she said. “It’s a complete disadvantage to American businesses.”

Meanwhile, the GENIUS bill, which passed a key 66–32 vote to defeat a filibuster, is the first comprehensive federal proposal to regulate stablecoins. It establishes clear frameworks for issuers, introduces consumer protections, and aims to maintain the US dollar’s dominance in global finance.

Related: Hong Kong’s Stablecoin Bill Passed to Strengthen Virtual Asset Regulations

GENIUS Act Advances in Senate, Aims for U.S. Stablecoin Regulatory Clarity

The GENIUS Act comes at a time when stablecoins have become the leading form of transaction volume on blockchain networks. As the international race for regulation intensifies, the bill seeks to prevent US innovation from moving offshore. 

Comparable regulatory structures have already taken effect in the European Union under MiCA, with other jurisdictions such as Singapore, Hong Kong, the UAE, and Japan also implementing stablecoin laws.

Related: Senate Advances GENIUS Act: Will It Unlock Trillions in Stablecoin Liquidity?

Backers of the bill, including Senators Kirsten Gillibrand, Bill Hagerty, Tim Scott, and Angela Alsobrooks, argue that the legislation will promote responsible innovation and provide regulatory clarity, giving US-based issuers the confidence to scale securely. 

Industry stakeholders have also voiced support, noting that the framework could enhance market integrity while positioning the US as a global standard-setter.

Wyoming Leads by Example with State-Backed Stablecoin (WYST) Launching Soon

Lummis’ home state of Wyoming is further backing the Senator’s message through practical implementation. The state is preparing to launch its own government-backed stablecoin, the WYST, by July. 

Created under the Wyoming Stable Token Act signed into law in 2023, the token will be pegged to the US dollar and redeemable for fiat. The Wyoming Stable Token Commission has partnered with LayerZero for the development and deployment of the asset, which is already being tested on multiple networks.

Wyoming’s stablecoin initiative serves as a working model for how state governments can embrace blockchain technology, bolstering the case for broader federal adoption. 

The GENIUS Act, if passed by both chambers of Congress and signed into law by President Trump, could make the US the global leader in stablecoin oversight and innovation.