To provide for effective 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
This bill creates the first federal regulatory framework for payment stablecoins (crypto tokens pegged to the US dollar). It establishes two pathways for legally issuing stablecoins: non-depository trust companies can issue up to $10 billion, while larger issuers must obtain a depository institution charter. Algorithmic stablecoins are banned entirely.
Who Benefits and How
Existing stablecoin issuers (like Circle and Paxos) that were already operating before May 2024 receive priority processing of their applications, giving them a competitive head start. Traditional banks gain the ability to enter the stablecoin market through dedicated subsidiary charters. State-chartered trust companies can continue operating under a dual federal-state regulatory framework.
Who Bears the Burden and How
Stablecoin issuers must maintain 1:1 reserves in cash, Treasury securities, or Fed deposits, and submit to regular audits. Algorithmic stablecoin projects are completely prohibited from operating. Crypto custodians face new requirements to segregate customer assets and treat them as off-balance sheet.
Key Provisions
- Non-depository trust companies can issue stablecoins up to $10B with state and Federal Reserve oversight
- Depository institutions require separate charter and full banking supervision to issue stablecoins
- All stablecoins must be backed 1:1 by cash, Treasury securities, or Fed deposits
- Algorithmic stablecoins are banned outright
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Establishes a comprehensive regulatory framework for payment stablecoins, allowing issuance by registered non-depository trust companies (up to $10B) and authorized depository institutions, while banning algorithmic stablecoins
Key Policy Areas
Financial Services, Banking, Cryptocurrency
Primary Purpose
Establishes a comprehensive regulatory framework for payment stablecoins, allowing issuance by registered non-depository trust companies (up to $10B) and authorized depository institutions, while banning algorithmic stablecoins
Policy Domains
Stablecoin Issuance Framework
Identified Gains
Contextual inference, no direct clause citation- State non-depository trust companies
- National banks seeking stablecoin business
- Existing stablecoin issuers pre-May 2024
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- New stablecoin market entrants
- Large issuers exceeding $10B threshold
Contextual inference, no direct clause citation
Definitions and General Requirements
Identified Gains
Contextual inference, no direct clause citation- Established stablecoin issuers
- Traditional banking institutions
- State trust companies
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Algorithmic stablecoin projects
- Unregistered stablecoin issuers
Contextual inference, no direct clause citation
Prudential and Custodial Requirements
Identified Gains
Contextual inference, no direct clause citation- Stablecoin holders
- Crypto custody customers
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Crypto custodians
- Payment stablecoin issuers
Contextual inference, no direct clause citation
Resolution and Enforcement
Identified Gains
Contextual inference, no direct clause citation- Stablecoin holders in failed institutions
- Financial system stability
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Stablecoin issuers facing enforcement
- Executives with criminal backgrounds
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
IntroducedMs. Lummis (for herself and Mrs. Gillibrand) introduced the following …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Algorithmic stablecoin projects, Companies seeking national stablecoin charter, Controlling persons of stablecoin issuers
Payment stablecoin issuers faces effects in multiple directions
Positive-direction: Companies seeking national stablecoin charter, Existing major stablecoin issuers like Circle and Paxos, Pre-May 2024 state-licensed stablecoin issuers
Negative-direction: Algorithmic stablecoin projects, Controlling persons of stablecoin issuers, Executives with criminal financial backgrounds, Large stablecoin issuers over $10B, New stablecoin market entrants after May 2024, Unlicensed stablecoin issuers
Authorized depository institutions, Bank holding companies with stablecoin subsidiaries, Cryptocurrency custodians
Insured depository institutions faces effects in multiple directions
Positive-direction: Authorized depository institutions, Depository institutions seeking stablecoin business
Negative-direction: Bank holding companies with stablecoin subsidiaries, Cryptocurrency custodians
Stablecoin customers, Stablecoin customers and financial system, Stablecoin holders
FDIC, Federal banking regulators, Federal financial regulators
Positive-direction: Federal banking regulators, Federal financial regulators, Office of the Comptroller of the Currency
Negative-direction: FDIC
Registered non-depository trust companies, State-chartered non-depository trust companies, State-chartered stablecoin issuers
Positive-direction: Registered non-depository trust companies, State-chartered non-depository trust companies
Negative-direction: State-chartered stablecoin issuers
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_board"
- → Board of Governors of the Federal Reserve System
- "the_comptroller"
- → Comptroller of the Currency
- "the_board"
- → Board of Governors of the Federal Reserve System
- "the_comptroller"
- → Comptroller of the Currency
- "state_bank_supervisor"
- → State banking regulator
- "the_board"
- → Board of Governors of the Federal Reserve System
- "the_corporation"
- → Federal Deposit Insurance Corporation
Key Definitions
Terms defined in this bill
A crypto asset used or designed to be used as a means of payment or settlement that is redeemable on demand on a 1-to-1 basis for United States dollars and does not provide any rights beyond the right to redeem for dollars
A crypto asset designed to maintain stable value relative to USD that relies on an algorithm adjusting supply in response to market demand
Owning or controlling 25% or more of voting securities, controlling election of majority of directors, or having power to exercise controlling influence over management
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.
Learn more about our methodology