#USStablecoinBill The **#USStablecoinBill** refers to proposed U.S. legislation aimed at regulating **stablecoins**—cryptocurrencies pegged to stable assets like the U.S. dollar or gold. These bills seek to establish federal oversight, protect consumers, and address risks related to financial stability and illicit finance.

### **Key Aspects of the U.S. Stablecoin Bill (2023-2024 Proposals)**

1. **Federal vs. State Oversight**

- Some proposals favor **federal regulation** (e.g., under the **Federal Reserve, OCC, or FDIC**).

- Others allow **state-regulated issuers** but with federal backup.

2. **Reserve & Transparency Requirements**

- Mandates **1:1 backing** with cash or high-quality liquid assets (e.g., Treasuries).

- Regular **audits & disclosures** to prevent fraud (like the 2022 Terra/Luna collapse).

3. **Who Can Issue Stablecoins?**

- **Banks & Trust Companies:** Some bills restrict issuance to federally insured institutions.

- **Non-Bank Entities:** May require special licenses (e.g., PayPal’s PYUSD operates under state trust laws).

4. **Ban on Algorithmic Stablecoins?**

- Post-Terra collapse, some lawmakers want to **ban unbacked algorithmic stablecoins**.

5. **CBDC Considerations**

- The bill may clarify how privately issued stablecoins interact with a potential **U.S. Central Bank Digital Currency (CBDC)**.

### **Why It Matters**

- **Consumer Protection:** Prevents another **TerraUSD (UST)-style crash**.

- **Financial Stability:** Mitigates risks if stablecoins grow to **trillions in transactions**.

- **U.S. Crypto Leadership:** A clear framework could attract innovation vs. offshore issuers (e.g., Tether, USDC).

### **Key Players & Status**

- **House Republicans (e.g., Patrick McHenry)** push for a **market-friendly** approach.

- **Democrats (e.g., Maxine Waters)** emphasize **stricter oversight**.

- **Biden Administration** supports regulation but hasn’t endorsed a specific bill yet.

- **Current Status (2024):** Negotiations ongoing; possible passage in 2024-2025.