#StablecoinLaw

Regulatory Framework for Stablecoins**

- Defines "payment stablecoins" as digital assets pegged to a fixed monetary value (e.g., 1:1 to the U.S. dollar) and designed for payments .

- Requires stablecoins to be **fully backed by liquid reserves** (e.g., cash, short-term Treasuries) and mandates monthly disclosures of reserve composition .

2. **Issuer Requirements**

- Only "permitted issuers" (U.S.-based banks, nonbanks, or state/federally approved entities) can issue stablecoins. Foreign issuers must comply with comparable regulations .

- Prohibits interest/yield on stablecoins and bans rehypothecation of reserves .

3. **Dual-Track Oversight**

- **Federal oversight**: For issuers with >$10B in stablecoins or federally chartered entities.

- **State oversight**: Smaller issuers (<$10B) can opt for state regimes certified as "substantially similar" to federal standards .