The Future of Stablecoins in Congress: Regulations and Digital Dollar Study

A draft of a stablecoin bill circulating among US lawmakers since last fall has been published, which focuses on stablecoins and central bank digital currencies (CBDCs). The bill proposes that "endogenously collateralized" stablecoins would be unlawful to issue, create or originate for two years. The bill also lays out a framework for who is allowed to issue stablecoins in the US, which could be limited to banks, depository institutions and nonbank institutions that apply for regulatory clearance. The bill calls for a study on a Federal Reserve Digital Dollar to be released within one year and a briefing on CBDCs within 180 days of the bill becoming law.