Four senators today introduced legislation they said would create a clear regulatory framework for payment stablecoins.
Among its provisions, the Guiding and Establishing National Innovation for U.S. Stablecoins Act would establish clear procedures for institutions seeking licenses to issue stablecoins, according to a summary of the bill. It also would implement reserve requirements and “light-touch, tailored regulatory standards” for stablecoin issuers.
For issuers of more than $10 billion of stablecoins, the legislation would apply the Federal Reserve’s regulatory framework to depository institutions and the Office of the Comptroller of the Currency’s framework for nonbank issuers. It allows for state regulation of issuers under $10 billion in market capitalization and provides a waiver process for issuers exceeding the threshold to remain state-regulated.
“From enhancing transaction efficiency to driving demand for U.S. Treasuries, the potential benefits of strong stablecoin innovation are immense,” said lead sponsor Sen. Bill Haggerty (R-Tenn.). “My legislation establishes a safe and pro-growth regulatory framework that will unleash innovation and advance the president’s mission to make America the world capital of crypto.”
Senate Banking Committee Chairman Tim Scott (R-S.C.) and Sens. Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) are cosponsoring the legislation.
