US Senators propose stablecoin regulation bill

US Senator Bill Hagerty, who supports cryptocurrencies, has announced a legislative discussion draft aimed at creating a regulatory framework for stablecoins, which is very similar to the work being done in the House of Representatives. Republican Hagerty said in a statement on Thursday that his bill "provides much-needed regulatory clarity." The bill is very similar to the Clarity for Payment Stablecoins Act drafted by Republican Representative Patrick McHenry and Democrat Maxine Waters in the House.

Hagerty's bill adopts the structure of the House bill, while dividing federal regulation into the Federal Reserve's regulation of banks and the Currency Supervision Bureau's regulation of non-bank institutions. The bill will include a provision that issuers who exceed the $10 billion threshold may receive exemptions from federal regulators and continue to be regulated by their state. The legislative draft also includes maintaining foreign exchange reserves denominated in US dollars on a one-to-one basis.