US Representatives French Hill and Bryan Steil have released a discussion draft for a bill that would establish a regulatory framework for dollar-pegged payment stablecoins in the United States.
The legislation would impose a two-year moratorium on issuing an “endogenously collateralized stablecoin,” meaning issuers would be prohibited from creating stablecoins backed by self-issued digital assets.
In addition, it would require the US Treasury Department to facilitate a study on stablecoins.
In a news release, House Financial Services Committee Chairman Hill said the discussion draft would clarify payment stablecoins rules and ensure a federal path for issuers. He said they would work with the Trump administration, the House and Senate to “get this right” and “deliver a dollar-backed stablecoin for the American people.”
The release of the draft bill follows confirmation from the Trump administration that it plans to regulate and bring stablecoins onshore. President Donald Trump’s Crypto Czar David Sacks said stablecoins could “extend the dollar's dominance internationally.”
Promoting the US dollar as the world’s reserve currency
Some industry observers have interpreted Trump’s crypto executive order as a sign of his pro-crypto stance. Others argue that the goal is to ensure the US dollar remains the world’s reserve currency.
In a recent Cointelegraph interview, attorney David Lesperance said the executive order was designed to position the US as a leader in digital asset development. Still, he said this support would end if developments threatened the dollar’s position as the world’s reserve currency.
Following the release of the draft bill, lawmakers echoed that sentiment.
Hill said in a news release that implementing a stablecoin framework would boost the dollar as the world’s reserve currency:
“By implementing a clear regulatory structure for payment stablecoins, we can support continued innovation, bolster the US dollar’s position as the world’s reserve currency, and protect consumers and investors.”
Meanwhile, Senate Banking Committee Chairman Tim Scott said creating a regulatory framework for stablecoins was critical to ensure innovation in the US while “promoting the US dollar's global position.”
Related: Trump executive order raises EU concerns over USD stablecoin dominance
Bringing stablecoins under Federal Reserve rules
The latest stablecoin bill follows an effort from the Senate to introduce a bill that also aims to create a regulatory framework for stablecoins.
On Feb. 4, US Senator Bill Hagerty introduced the “Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.” The bill aims to advance Trump’s pledge to make the US the capital of crypto and provide a framework that supports innovation. The bill received support from senators Scott, Kirsten Gillibrand and Cynthia Lummis.
In a news release announcing the discussion draft, Hagerty said stablecoins could drive demand for US Treasurys and enhance transaction efficiency.
“We need legislation that establishes a safe and pro-growth regulatory framework that will unleash innovation and advance the President’s mission to make America the world capital of crypto,” Hagerty added.
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