US Congress Considers New Legislation for Stablecoin Payments with Circle Executive Testifying

The US Congress has introduced a new draft bill providing a framework for stablecoins, with the Federal Reserve in charge of non-bank stablecoin issuers. Failure to register could result in up to five years in prison and a fine of $1 million. The bill also includes a two-year ban on issuing stablecoins not backed by tangible assets and establishes a study on "endogenously collateralized stablecoins." The US government can establish standards for interoperability between stablecoins, and Congress and the White House would support a Federal Reserve study on issuing a digital dollar.