#USStablecoinBill

The **U.S. Stablecoin Bill** refers to proposed legislation aimed at regulating stablecoins—a type of cryptocurrency pegged to a stable asset like the U.S. dollar. Stablecoins (e.g., Tether **USDT**, USD Coin **USDC**) are widely used in crypto trading, DeFi, and payments, but their rapid growth has raised concerns about financial stability, consumer protection, and systemic risks.

### **Key Aspects of the U.S. Stablecoin Bill**

1. **Regulatory Framework**

- The bill seeks to establish clear rules for stablecoin issuers, including reserve requirements, transparency, and auditing standards.

- The **Federal Reserve**, **Treasury Department**, and possibly state regulators (like **NYDFS**) may oversee compliance.

2. **Issuer Requirements**

- Stablecoin issuers may need to be **insured depository institutions** (e.g., banks) or adhere to strict capital and liquidity rules.

- **Full backing by cash or high-quality liquid assets** (e.g., U.S. Treasuries) could be mandated.

3. **Ban on Algorithmic Stablecoins?**

- Following the collapse of **TerraUSD (UST)** in 2022, some lawmakers want to restrict or ban **algorithmic stablecoins** that rely on code rather than reserves.

4. **State vs. Federal Oversight**

- Some proposals favor a **dual banking system** (state and federal charters), while others push for a **federal-first approach**.

5. **Bipartisan Efforts & Challenges**

- **House Republicans** (e.g., Patrick McHenry) and **Democrats** (e.g., Maxine Waters) have worked on drafts, but disagreements persist on:

- Who should be the primary regulator?

- How to handle non-bank issuers (like PayPal or crypto firms)?

- Whether **CBDCs (Central Bank Digital Currencies)** should be considered alongside stablecoins.