Bill > S919

This bill establishes a comprehensive regulatory framework for payment stablecoins in the United States, defining them as digital assets designed to be used as a means of payment with a stable value relative to a national currency. The legislation creates a two-tiered regulatory system where payment stablecoins can only be issued by permitted issuers, including subsidiaries of insured depository institutions, federal qualified nonbank payment stablecoin issuers, and state-qualified issuers. Key provisions include requiring issuers to maintain 1:1 reserves backed by high-quality liquid assets like U.S. Treasury bills, mandating monthly financial certifications, implementing strict anti-money laundering and sanctions compliance requirements, and establishing priority for stablecoin holders in insolvency proceedings. The bill also prohibits unauthorized stablecoin issuance, with penalties of up to $1,000,000 and 5 years in prison for violations, and creates a mechanism for federal regulators to designate and potentially prohibit foreign stablecoin issuers that do not comply with U.S. legal orders. Additionally, the legislation explicitly clarifies that compliant payment stablecoins are not considered securities or commodities, provides a pathway for state-level regulation, and requires the Treasury to develop international reciprocity arrangements for stablecoin regulation.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/919/all-info