Creates a federal licensing and oversight framework for payment stablecoins, requiring issuers to hold full reserves in safe assets, redeem tokens on demand, and undergo monthly audits, while barring anyone but approved issuers from issuing them in the United States.

• Makes it unlawful for anyone other than a permitted issuer to issue a payment stablecoin in the United States, with fines up to $1,000,000 per violation for knowing violations.
• Requires issuers to back each token 1 to 1 with reserves such as cash, short-term Treasury bills, and insured deposits, publish monthly reserve reports examined by a registered accounting firm, and bars paying interest or yield to holders for simply holding the token.
• Lets issuers choose a federal regulator (the Comptroller of the Currency, a bank regulator, or the NCUA) or a state regulator for issuers up to $10,000,000,000 in outstanding tokens, and places larger state issuers under federal oversight.
• Puts stablecoin holders first in line for reserve assets if an issuer becomes insolvent, and treats the stablecoin as a non-security and non-commodity under existing securities and commodities laws.
• Requires the Treasury to write anti-money laundering and sanctions rules, sets conditions for foreign issuers to sell tokens in the United States, and takes effect on the earlier of 18 months after enactment or 120 days after final regulations.

• Banking, Housing, and Urban Affairs Committee (Senate)

Finance and Financial Sector