U.S. Sen. Bill Hagerty (R-TN) and U.S. Rep. Trey Hollingsworth (R-IN) have introduced a measure to provide stablecoin cryptocurrency industry clarity and support methods.
The Stablecoin Transparency Act (S. 3970 and H.R. 7328) requires stablecoins to be backed by government securities with maturities less than 12 months or domestic dollars while requiring stablecoin issuers to publicly release audited reports of reserves executed by third-party auditors.
“From whether coins are securities or commodities, to who is in charge of regulating them, those in the cryptocurrency marketplace are navigating significant ambiguity,” Hagerty, a member of the Senate Banking Committee, said. “This legislation aims to provide much-needed clarity without giving the keys away to unaccountable bureaucrats who threaten to choke off innovation. I am pleased to have Congressman Hollingsworth’s partnership in this common-sense effort.”
The lawmakers noted that the bill does empower federal agencies to regulate technologies out of existence or impose onerous requirements on stablecoin issuers.
“There is a tremendous amount of potential in stablecoin technology, and we should lay down a foundation providing stablecoin issuers clarity to ensure consumers are well-protected and to ensure that the future of the technology is well-protected,” Hollingsworth said. “As these digital assets proliferate across financial services and permeate Americans’ lives, we should make sure it happens safely to enable more development and investment in the industry.”