Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas – from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about CryptonewsAd Disclosure
We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
US House Financial Services Committee Chairman French Hill and Digital Assets Subcommittee Chair Bryan Steil have released a stablecoin discussion draft on Thursday.
The draft aims to “establish a regulatory framework for U.S. stablecoins,” FOX reporter Eleanor Terrett wrote on X.
The 47-page discussion draft furnishes details on implementing clear regulatory structure for dollar-backed stablecoin payments to bolster USD’s position as world’s reserve currency. The draft legislation seeks feedback from consumers, issuers, and stakeholders.
“Our discussion draft will provide clarity for payment stablecoins and ensure a federal and state path for stablecoin issuers,” Chairman Hill said in a statement.
“Subcommittee Chairman Steil and I look forward to receiving feedback from the public and working in tandem with the Trump Administration and our colleagues in the House and Senate to make sure we get this right and deliver a dollar-backed stablecoin for the American people.”
Further, the bill bans stablecoins that are solely backed by self-issued digital assets for two years. It also mandates a study by the Secretary of the Treasury on their risks.
The Secretary shall provide a report not later than 365-days, “that contains all findings made in carrying out the study.” This includes benefits and risks of technological design features, utilization of non-payment stablecoins, nature of reserve compositions, among others.
On February 4, Senator Bill Hagerty introduced a new stablecoin bill, dubbed GENIUS Act, outlining a regulatory environment for the asset class. The Senator initially unveiled draft legislation on the topic in October 2024.
The bill came as a latest push to create pro-crypto guidelines in line with President Donald Trump’s priority. On the same day, David Sacks, Trump’s crypto czar, said to regulate stablecoins and bring the market onshore. Speaking to CNBC, Sacks noted that these are one of the key focus for the Trump administration alongside Bitcoin.
The market “has already taken off but mostly offshore,” he said, adding that the government is mulling to “bring that innovation onshore.”
In January, Trump signed an executive order that supports the establishment of a U.S. strategic digital assets stockpile.
Fed Governor Backs Regulated Stablecoins, Says They Help Boost USD Global Dominance
Meanwhile, Federal Reserve Governor Christopher Waller is optimistic that the asset class would propel the dollar’s status as a reserve currency. Per a Bloomberg report, the Fed governor stressed that “stablecoins are a net addition to payment system.”
“You might want regulatory rails around it to make sure the money is there, who is authorizing, who is checking to make sure it’s fully backed.”
He said that crypto legislation is something “to go forward with” for both major political parties. Waller believes that good stablecoin legislation only strengthens the dollar dominance in international trade and finance.
Why Trust Cryptonews
