U.S. Senator Proposes Stablecoin Regulation Bill

U.S. Senator Bill Hagerty, who supports cryptocurrency, has released a legislative discussion draft that provides much-needed regulatory clarity. The draft is very similar to the Clarity for Payment Stablecoins Act drafted by Republican Representative Patrick McHenry and Democrat Maxine Waters in the House of Representatives.

Hagerty's draft adopts the structure of the House bill, dividing federal regulation into Federal Reserve supervision over banks and Office of Comptroller of Currency supervision over non-bank institutions. The draft will include a provision that issuers exceeding a threshold of $10 billion may receive exemptions from federal regulatory agencies and then continue to be governed by their respective states. The legislative draft also includes maintaining foreign exchange reserves priced in dollars on a one-to-one basis.