#USStablecoinBill
The US Stablecoin Bill, also known as the Lummis-Gillibrand Payment Stablecoin Act, aims to establish a regulatory framework for stablecoins in the United States. $BTC
Key Provisions
- *Stablecoin Issuance*: The bill allows stablecoin issuance through state non-depository trust companies or depository institutions chartered by the Office of the Comptroller of the Currency (OCC) or state bank supervisors.
- *Reserves*: Stablecoin issuers must maintain 100% reserves in US dollars, demand deposits, or certain US Treasury Bills.
- *Algorithmic Stablecoins*: The bill prohibits algorithmic payment stablecoins, which rely on algorithms to adjust supply and maintain stable value.
- *Consumer Protection*: Issuers must honor customer redemption requests at par value within a day and provide regular disclosures about reserves and outstanding stablecoins.
Regulatory Framework
- *Federal Reserve Board (FRB)*: The FRB will oversee stablecoin issuers, including non-depository trust companies with over $10 billion in outstanding stablecoins.
- *Office of the Comptroller of the Currency (OCC)*: The OCC will charter depository institutions issuing stablecoins.
- *State Bank Supervisors*: State bank supervisors will regulate state-chartered institutions issuing stablecoins.
Goals and Implications
- *Promote Innovation*: The bill aims to foster innovation in the stablecoin market while protecting consumers and maintaining the US dollar's dominance.
- *Financial Inclusion*: Stablecoins can improve transaction efficiency, expand financial inclusion, and strengthen the dollar's global position.
- *Bipartisan Support*: The bill has received bipartisan support from Senators Cynthia Lummis, Kirsten Gillibrand, Tim Scott, and Bill Hagerty ².
