The stablecoin bill from Senator Hagerty is on track to set the industry’s on a working path.
By Godfrey Benjamin
Edited by Marco T. Lanz
Updated
3 mins read
Bill Hagerty, a popular Republican Senator, is taking a bold step toward shaping America’s crypto future. According to Bloomberg, Senator Hagerty has teased a new bill to establish clear regulatory guidelines for stablecoins.
This new bill, dubbed “Guiding and Establishing National Innovation for US Stablecoins” Act, is expected to be introduced on Tuesday. He revealed that the bill seeks to provide a structured regulatory environment while encouraging financial innovation.
Hagerty’s proposal lays down a roadmap for stablecoin issuers. It requires that US dollars, Treasury bills, and Federal Reserve notes back all issued stablecoins. Additionally, issuers must provide monthly audited financial reports to ensure transparency and accountability.
A key feature of the legislation is a “light-touch” regulatory approach. This would allow issuers to be governed at the federal or state level based on specified parameters. Interestingly, Hagerty’s bill has gained support from both parties despite debates over crypto regulation.
Senators Kirsten Gillibrand, Tim Scott, and Cynthia Lummis have co-sponsored it, showing rare unity in digital finance. Lummis, now appointed as the Chair of the Senate Banking Subcommittee on digital assets, has always advocated for establishing clear regulatory guidelines for the crypto industry.
Notably, this is not Hagerty’s first proposal. His earlier draft in October 2024 was similar to the House’s “Clarity for Payment Stablecoins Act.” Rep. Maxine Waters and former Chair Patrick McHenry led it.
One big issue in past stablecoin laws is who should approve new stablecoins. Some say state regulators should do it. Others believe the Federal Reserve should have control. The House version of the bill passed through a Republican-led committee.
However, Waters opposed it, saying it was too easy on state approvals. Hagerty’s bill tries to find a middle ground with clear but flexible rules. Industry proponents have advocated for related common ground, which is believed can help place issuers on a clear path for growth.
President Donald Trump has made no secret of his ambitions to position the US as a global leader in cryptocurrency. In August, he took to X to announce his commitment to making America the “crypto capital of the planet.”
Later, Coinspeaker reported that his administration issued an executive order to fast-track a federal regulatory framework for digital assets, including stablecoins. With Trump’s pro-crypto stance, Rep. Hagerty’s bill might find a more receptive audience in Washington than previous attempts.
Rep. Hagerty’s bill represents a crucial step in the ongoing battle over stablecoin regulation. It could provide much-needed clarity for issuers, investors, and regulators if passed. However, the road to approval remains uncertain.
This bill could be the key to balancing innovation and regulation in digital assets. The next few months will show if the US leads in stablecoin rules or stays uncertain.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
