US senators propose stablecoin regulation draft

Pro-cryptocurrency U.S. Senator Bill Hagerty has released a draft discussion of legislation aimed at creating a regulatory framework for stablecoins, much like the work underway in the House. In a statement on Thursday, Republican Hagerty said his draft legislation "provides much-needed regulatory clarity." The draft is very close to the Clarity for Payment Stablecoins Act, which was drafted in the House by Republican Rep. Patrick McHenry and Democrat Maxine Waters.
Hagerty's draft adopts the structure of the House bill, while dividing federal regulation between the Federal Reserve's supervision of banks and the Office of the Comptroller of the Currency's supervision of non-banks. The draft legislation would include a provision that issuers above the $10 billion threshold could be exempted from federal regulators and then remain under the jurisdiction of their state. The draft legislation also includes a one-to-one approach to maintaining dollar-denominated foreign exchange reserves.