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Republican Sen. Bill Hagerty introduced a new bill aimed at establishing a regulatory framework for stablecoins. The proposed legislation, named the "Guiding and Establishing National Innovation for US Stablecoins," seeks to set standards for the backing of stablecoin payments with assets such as Treasury bills, U.S. dollars, and Federal Reserve notes, and would also mandate monthly audited reports from firms issuing stablecoins.
The bill has garnered bipartisan support with Sens. Kirsten Gillibrand (D-N.Y.), Tim Scott (R-S.C.), and Cynthia Lummis (R-Wyo.) joining as cosponsors. The legislation proposes "light-touch" regulatory standards for the stablecoin industry and outlines the division of regulatory responsibilities between federal and state governments.
This legislative effort follows a discussion draft released by Hagerty in October 2024, which shared similarities with a House of Representatives initiative known as the Clarity for Payment Stablecoins Act. The House bill, developed by Rep. Maxine Waters (NYSE:WAT) (D-Calif) and former Rep. Patrick McHenry (R-N.C.), did not see significant progress after its introduction, with disagreements particularly around the role of state regulators in stablecoin issuance.
The introduction of Hagerty’s bill comes amidst ongoing discussions in Washington regarding the oversight of stablecoins. The process has been challenging, with previous efforts by key lawmakers encountering hurdles in reaching consensus. The bill’s introduction also aligns with President Donald Trump’s favorable stance on the crypto industry. In August, Trump expressed his desire to make the U.S. the global leader in crypto, followed by an executive order to establish a federal working group focused on creating a regulatory framework for digital assets, including stablecoins.
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