House draft bill proposes state regulation and separation of stablecoin and digital asset markets.

Republicans on the House Financial Services Committee have released a new draft of legislation to regulate stablecoin issuers, which focuses on rules governing the registration and approval process for individual prospective stablecoin issuers. The bill contains many of the features of a version that was negotiated last year, such as the requirement that payment stablecoin issuers be approved and regulated by either a "federal payment stablecoin regulator" or "a registered State qualified payment stablecoin issuer." The new draft envisions a larger role in the market for state regulators, despite the fact that the vast majority of states do not have a stablecoin regulatory framework in place yet.