US Congress Unveils Draft Bill for Stablecoin Regulation

The chairmen of the US House Financial Services Committee and the Subcommittee on Digital Assets, French Hill and Bryan Steil, have released a draft bill aimed at regulating stablecoins.

?NEW: Chairman @RepFrenchHill and @RepBryanSteil today released their discussion draft for #stablecoins.

Read more?https://t.co/wIzov4s99t

— Financial Services GOP (@FinancialCmte) February 6, 2025

The document aims to “provide a pathway for issuers of ‘stablecoins’ at both the state and federal levels.”

The 47-page document offers detailed guidance on implementing a clear regulatory framework for payments backed by US dollar stablecoins, with the goal of reinforcing the USD’s status as a global reserve currency.

The bill introduces a two-year ban on issuing “stablecoins” backed solely by digital assets. It mandates the Treasury Secretary to conduct a study on the risks of such tokens within the next 365 days.

Hill and Steil have called on consumers, issuers, and stakeholders to provide their feedback.

The legislators intend to collaborate with the Trump administration and their colleagues in Congress.

On the same day, Federal Reserve Governor Christopher Waller agreed that stablecoins could support the dollar’s reserve status.

According to him, this asset class serves as a “pure addition to the payment system.”

“You might need regulatory rails to confirm the existence of money [and its full backing],” the official explained.

Waller emphasized that bipartisan efforts are essential for passing digital asset legislation. Only then can the dominance of the dollar in international trade and finance be assured, he added.

On February 4, Senator Bill Hagerty introduced a proposal to create a regulatory system for stablecoin issuers, dividing oversight responsibilities between state agencies and the Federal Reserve with the OCC at the US Treasury.

David Sacks, head of the Digital Asset Markets Working Group and special advisor to Donald Trump on AI and cryptocurrencies, noted that the primary task of the structure is to enact stablecoin legislation.

Earlier, the SEC rescinded Staff Accounting Bulletin SAB 121. The document effectively prohibited banks from holding digital assets.