Senator Bill Hagerty Introduces Bill for Clear US Stablecoin Regulations

Senator Bill Hagerty is introducing a new bill, the “Guiding and Establishing National Innovation for US Stablecoins” Act, aimed at creating regulatory guidelines for stablecoins. The bill will be presented on Tuesday and focuses on promoting financial innovation while ensuring a structured regulatory environment.

Key Provisions of the Stablecoin Bill

Stablecoins must be backed by US dollars, Treasury bills, or Federal Reserve notes.
Issuers are required to provide monthly audited financial reports.
The legislation proposes a "light-touch" regulatory approach, allowing governance at federal or state levels.
It has bipartisan support, co-sponsored by Senators Kirsten Gillibrand, Tim Scott, and Cynthia Lummis.

This proposal builds on Hagerty's previous draft from October 2024, which was similar to the House’s “Clarity for Payment Stablecoins Act.” A contentious issue remains regarding who should approve new stablecoins—state regulators or the Federal Reserve. The current bill aims to create clear but flexible rules that could facilitate growth for issuers.

Impact of Trump’s Pro-Crypto Position

Former President Donald Trump has expressed intentions to make the US a leader in cryptocurrency, which may bolster support for Hagerty’s bill in Congress. His administration previously issued an executive order to expedite a federal regulatory framework for digital assets.

If approved, this bill could clarify regulations for issuers, investors, and regulators in the stablecoin market. The outcome will be pivotal in determining whether the US establishes strong leadership in stablecoin regulation or continues with uncertainty.