To provide for the regulation of payment stablecoins, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The bill defines key terms for the regulatory framework including payment stablecoin, digital asset, permitted payment stablecoin issuer, and various regulatory entities like the Board of Governors, Comptroller, and FDIC, establishes reserve requirements for payment stablecoin issuers mandating 1-to-1 backing with safe assets (Treasury bills, cash, bank deposits), monthly audits by registered public accounting firms, CEO/CFO, and creates an application and licensing process for stablecoin issuers through federal regulators, with 120-day decision deadlines, appeal procedures, and automatic approval if regulators miss deadlines. It relies on compliance mandates, reporting requirements, product standards, and exemptions. The main policy areas are Finance and Financial Services.
Who Benefits and How
Stablecoin holders could face reduced risk, Stablecoin issuers could face lower compliance burdens, and Banks and credit unions offering digital asset custody could face lower compliance burdens.
Who Bears the Burden and How
Office of the Comptroller of the Currency would take on compliance duties, Federal Reserve Board would take on compliance duties, and Department of the Treasury would take on compliance duties.
Key Provisions
- Defines key terms for the regulatory framework including payment stablecoin, digital asset, permitted payment stablecoin issuer, and various regulatory entities like the Board of Governors, Comptroller, and FDIC.
- Establishes reserve requirements for payment stablecoin issuers mandating 1-to-1 backing with safe assets (Treasury bills, cash, bank deposits), monthly audits by registered public accounting firms, CEO/CFO...
- Creates an application and licensing process for stablecoin issuers through federal regulators, with 120-day decision deadlines, appeal procedures, and automatic approval if regulators miss deadlines.
- Requires grants federal regulators examination, enforcement, and supervision authority over stablecoin issuers including cease-and-desist powers, removal authority for officers, and civil penalties up to $100,000 per...
- Establishes state-level regulatory pathway for stablecoin issuers, allowing state regulators to supervise issuers under $10 billion market cap with substantially similar rules, while giving the Federal Reserve backup...
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill defines key terms for the regulatory framework including payment stablecoin, digital asset, permitted payment stablecoin issuer, and various regulatory entities like the Board of Governors, Comptroller, and FDIC, establishes reserve requirements for payment stablecoin issuers mandating 1-to-1 backing with safe assets (Treasury bills, cash, bank deposits), monthly audits by registered public accounting firms, CEO/CFO, and creates an application and licensing process for stablecoin issuers through federal regulators, with 120-day decision deadlines, appeal procedures, and automatic approval if regulators miss deadlines.
Key Policy Areas
Finance, Financial Services
Primary Purpose
The bill defines key terms for the regulatory framework including payment stablecoin, digital asset, permitted payment stablecoin issuer, and various regulatory entities like the Board of Governors, Comptroller, and FDIC, establishes reserve requirements for payment stablecoin issuers mandating 1-to-1 backing with safe assets (Treasury bills, cash, bank deposits), monthly audits by registered public accounting firms, CEO/CFO, and creates an application and licensing process for stablecoin issuers through federal regulators, with 120-day decision deadlines, appeal procedures, and automatic approval if regulators miss deadlines.
Policy Domains
Section 2 - Definitions
Identified Gains
- Stablecoin holders
- Stablecoin issuers
- Banks and credit unions offering digital asset custody
- Trust companies
- Public accounting firms
Identified Costs
- Office of the Comptroller of the Currency
- Federal Reserve Board
- Department of the Treasury
- Federal Reserve System
- Unauthorized stablecoin issuers
Sponsors
Legislative Progress
IntroducedMr. Hagerty (for himself, Mr. Scott of South Carolina, Mrs. …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Algorithmic stablecoin projects, Cryptocurrency and stablecoin companies, Cryptocurrency custodians
Stablecoin issuers faces effects in multiple directions
Positive-direction: Cryptocurrency exchanges, Established cryptocurrency companies, Existing stablecoin issuers, Foreign stablecoin issuers in compliant jurisdictions, Small and mid-size stablecoin issuers, US stablecoin issuers seeking international operations
Negative-direction: Cryptocurrency custodians, Large stablecoin issuers over $10B, Non-bank cryptocurrency custodians, Officers and directors of stablecoin issuers, Permitted payment stablecoin issuers, Small stablecoin startups, Unauthorized stablecoin issuers, Unregulated crypto custody providers
Department of the Treasury, Federal Reserve Board, Federal Reserve System
Banks and credit unions offering digital asset custody, Treasury securities market, Trust companies
Positive-direction: Banks and credit unions offering digital asset custody, Treasury securities market, Trust companies
Negative-direction: Unsecured creditors of stablecoin issuers
Public accounting firms, Securities lawyers and compliance firms
Positive-direction: Public accounting firms
Negative-direction: Securities lawyers and compliance firms
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_board"
- → Board of Governors of the Federal Reserve System
- "the_comptroller"
- → Comptroller of the Currency
- "the_corporation"
- → Federal Deposit Insurance Corporation
- "the_secretary"
- → Secretary of the Treasury
- "primary_federal_regulator"
- → OCC, FDIC, Fed, or NCUA depending on issuer type
- "the_board"
- → Board of Governors of the Federal Reserve System
- "the_comptroller"
- → Comptroller of the Currency
Note: Primary Federal payment stablecoin regulator varies by entity type: OCC for Federal qualified nonbanks, appropriate Federal banking agency for depository institution subsidiaries, NCUA for credit union subsidiaries.
Key Definitions
Terms defined in this bill
A digital asset designed for payment/settlement that the issuer is obligated to redeem for a fixed amount of monetary value and maintains stable value relative to that fixed amount; excludes national currencies and registered investment company securities.
A subsidiary of an insured depository institution approved under section 5, a Federal qualified nonbank payment stablecoin issuer approved under section 5, or a State qualified payment stablecoin issuer.
Any digital representation of value which is recorded on a cryptographically-secured distributed ledger.
A nonbank entity approved by the primary Federal payment stablecoin regulator, pursuant to section 5, to issue payment stablecoins.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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