TL;DR
- Senator Bill Hagerty seeks to establish a favorable regulatory framework for stablecoins in the U.S.
- The proposal requires stablecoins to be backed by dollars, Treasury bonds, and Federal Reserve notes.
- The project aims to position the U.S. as the global epicenter of crypto-innovation by establishing a clear and transparent infrastructure for the development of this emerging technology.
Republican Senator Bill Hagerty will introduce a bill to regulate stablecoins, aiming to create a safe legal framework conducive to financial innovation in the United States. The initiative, titled “Guiding and Establishing National Innovation for US Stablecoins,” seeks to establish clear requirements for the issuance of these digital assets, ensuring they are backed by tangible assets such as U.S. dollars, Treasury bonds, and Federal Reserve notes.
According to statements obtained by Bloomberg, Hagerty emphasizes that this legislation will
“unleash innovation and advance the President’s mission to make the United States the global capital of cryptocurrencies.”
This could mark a significant milestone in the regulation of stablecoins, a key segment of the crypto ecosystem that has been in regulatory limbo for years.
An Opportunity for Crypto Growth in the U.S.
Hagerty’s proposal also requires stablecoin issuers to submit audited monthly reports to ensure financial transparency. The bill has the backing of figures such as Senator Cynthia Lummis, known for her pro-cryptocurrency stance, as well as Senators Tim Scott and Kirsten Gillibrand.
The regulation of stablecoins has been a complex negotiation topic in Congress over the past years. In 2023, the Chairwoman of the House Financial Services Committee, Maxine Waters, and her Republican counterpart, Patrick McHenry, unsuccessfully attempted to approve a regulatory framework that would allow stablecoins to be issued under state regulation without Federal Reserve intervention. That proposal was criticized by Democrats, who argued that it weakened federal control over the sector.
With this new initiative, the crypto sector could benefit from a more predictable ecosystem, instilling confidence in investors and fostering innovation.
Regulating stablecoins would not only ensure their use in digital payments with greater security but could also accelerate the adoption of cryptocurrencies in traditional markets.
Meanwhile, the U.S. administration’s stance on cryptocurrencies remains a topic of debate. Former President Donald Trump has expressed his support for the sector, committing to making the U.S. the “crypto capital of the world.” Recently, he issued an executive order to create a task force tasked with developing a federal framework for digital assets, including stablecoins.
