$USDC aims to regulate stablecoins in the US, addressing concerns about Big Tech firms entering the payments space. Key provisions include¹ ²:
- *Stablecoin Issuance*: Only financial businesses can issue stablecoins, excluding Big Tech companies like Meta, Google, Amazon, and X.
- *Reserve Requirements*: Stablecoin reserves must be held in cash, bank deposits, short-term Treasury bills, and certain types of repo agreements.
- *Regulatory Oversight*: The Federal Reserve and state regulators will oversee stablecoin issuers, with larger stablecoins requiring stricter regulations.
- *Ban on Algorithmic Stablecoins*: The