#USStablecoinBill

The U.S. is moving closer to passing a federal **stablecoin bill**, which could bring major regulatory clarity to the cryptocurrency market. Stablecoins—digital assets pegged to fiat currencies like the U.S. dollar—play a crucial role in crypto trading, payments, and decentralized finance (DeFi).

## **Key Developments in the Stablecoin Bill**

1. **Bipartisan Progress** – The **Lummis-Gillibrand Payment Stablecoin Act** (2024) and the **Clarity for Payment Stablecoins Act** (House version) aim to establish federal oversight.

2. **Federal vs. State Regulation** – The bill could grant the **Federal Reserve** oversight while allowing state-regulated issuers under certain conditions.

3. **Reserve Requirements** – Issuers may need to hold **1:1 cash or cash-equivalent reserves** to back stablecoins.

4. **Ban on Algorithmic Stablecoins?** – Following the collapse of TerraUSD (UST), lawmakers may restrict non-collateralized stablecoins.