Title: To establish reporting requirements for persons who issue fiat currency-backed stablecoins, and for other purposes.
Policy area: Finance and Financial Sector

Summary:
This bill addresses the regulatory treatment of fiat currency-backed stablecoins. The bill defines these as digital assets that (1) maintain price stability by backing the value with a nondigital currency, and (2) can be redeemed in that currency on a one-to-one basis.
Under the bill, the Securities and Exchange Commission and the Commodity Futures Trading Commission are prohibited from regulating fiat currency-backed stablecoins. The bill requires stablecoin issuers to hold all associated reserves in (1) government securities that mature in not more than 12 months, (2) fully collateralized security repurchase agreements, and (3) U.S. dollars or other nondigital currency.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8498 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 8498

    To establish reporting requirements for persons who issue fiat 
          currency-backed stablecoins, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 26, 2022

Mr. Hollingsworth introduced the following bill; which was referred to 
                  the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
    To establish reporting requirements for persons who issue fiat 
          currency-backed stablecoins, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. FIAT CURRENCY-BACKED STABLECOINS.

    (a) In General.--The term ``fiat currency-backed stablecoin'' means 
a fiat currency-backed digital asset--
            (1) that maintains price stability by backing the value of 
        such digital asset to a non-digital currency that is 
        denominated in the same currency as such digital asset is 
        issued; and
            (2) is redeemable on a one-to-one basis in the denominated 
        currency to which the digital asset is backed.
    (b) Treatment as a Security or Commodity.--A fait currency-based 
stablecoin is not a security (within the meaning given the term in 
section 3 of the Securities Exchange Act of 1934) or a commodity 
(within the meaning given the term in section 1a of the Commodity 
Exchange Act) and may not be regulated as such by the Securities 
Exchange Commission or the Commodity Futures Trading Commission.

SEC. 2. STABLECOIN ISSUER REQUIREMENTS.

    (a) Definitions.--In this section:
            (1) Fiat currency-backed stablecoin.--The term ``fiat 
        currency-backed stablecoin'' means a fiat currency-backed 
        digital asset--
                    (A) that maintains price stability by backing the 
                value of such digital asset to a non-digital currency 
                that is denominated in the same currency as such 
                digital asset is issued; and
                    (B) is redeemable on a one-to-one basis in the 
                denominated currency to which the digital asset is 
                backed.
            (2) Stablecoin issuer.--The term ``stablecoin issuer'' 
        means a person that issues a fiat currency-backed stablecoin.
    (b) Reserves.--Each stablecoin issuer shall hold all reserves 
associated with each fiat currency-backed stablecoin issued by such 
stablecoin issuer in--
            (1) government securities that mature not more than 12 
        months;
            (2) fully collateralized security repurchase agreements; 
        and
            (3) United States dollars or any other non-digital 
        currency.
    (c) Reserve Reports.--Each stablecoin issuer shall, not later than 
30 days after the date of the enactment of this Act and every 30 days 
thereafter, publish on the website of such stablecoin issuer, a report 
on the reserves held by such stablecoin issuer that has been audited by 
a third-party auditor.
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