Senate Banking Committee Member Introduces Bill to Regulate Stablecoins
Senate Banking Committee member Bill Hagerty (R) introduced draft legislation to establish a regulatory framework for payment stablecoins. The draft proposal follows from the bipartisan "Clarity for Payment Stablecoins Act" passed by the House Financial Services Committee in last year. (See previous coverage.)
The bill outlines requirements for "permitted payment stablecoin issuers," including exemptions from federal (but not state) regulation for issues of less than $10 billion in total stablecoin. Additional requirements include maintaining dollar reserves on at least a 1-to-1 basis and publicly disclosing redemption policies. The bill prohibits any entity from issuing payment stablecoins without proper authorization and would mandate monthly certifications from the issuer's Chief Executive Officer and Chief Financial Officer.
Senator Hagerty stated: “Stablecoins have the potential not only to enhance transactions and payment systems, but also to help create new demand for U.S. Treasuries as we work to address our unsustainable deficit."
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The Congressional Research Service summarized the proposed Clarity for Payment Stablecoins Act and an implementing regulatory framework.
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House Financial Services Committee Chair Patrick McHenry (R-NC) touted the bipartisan "Clarity for Payment Stablecoins Act" recently passed by the Committee. He stated that the Act creates "a clear regulatory framework for the issuance of payment stablecoins" and "recognizes the strong role that states have played in regulating digital asset firms".
