#USStablecoinBill Requirements for the issuance of stablecoins for payment

Article 919 defines stablecoins for payment as digital assets issued for payment or settlement (including as collateral or guarantee) and redeemable for a predetermined fixed amount (e.g., 1 dollar). Issuers would be required to maintain at least one dollar of permitted reserves for each dollar of stablecoins. The bill would limit permitted reserves to currencies and foreign exchange, insured deposits in banks and credit unions, short-term Treasury bills, repurchase agreements ("repos") and reverse repos backed by Treasury bills, money market funds invested in some of these assets, central bank reserves, and any other similar asset issued by the government approved by regulators. Issuers would be restricted from using reserve assets for certain activities, including the redemption of stablecoins and their use as collateral in repos and reverse repos. The bill would require federal and state regulators to issue specific capital, liquidity, and risk management standards for federal and state stablecoin issuers but exempts the latter from the regulatory capital standards applied to traditional banks.