US senators propose a draft bill on stablecoin regulation that echoes the House bill framework

Pro-crypto U.S. Senator Bill Hagerty has unveiled a draft legislation discussion paper that seeks to create a regulatory framework for stablecoins, much like what’s going on in the House of Representatives. Hagerty, a Republican, said in a statement Thursday that his draft legislation “provides much-needed regulatory clarity.” The draft is very close to the Clarity for Payment Stablecoins Act, drafted in the House of Representatives by Republican Rep. Patrick McHenry and Democrat Maxine Waters. “This is Senator Hagerty’s version of the McHenry-Waters bill,” a spokesperson for the senator said in an emailed statement. Hagerty is also a member of the Senate Banking Committee, which has jurisdiction over major agencies including the U.S. Securities and Exchange Commission. Hagerty’s draft adopts the structure of the House bill while dividing federal regulation between the Federal Reserve’s supervision of banks and the Office of the Comptroller of the Currency’s supervision of non-bank institutions, the spokesperson said. The draft will include a provision that issuers exceeding a $10 billion threshold may be exempted from federal regulators and then continue to be subject to the jurisdiction of their home states. The draft legislation also includes maintaining foreign exchange reserves denominated in U.S. dollars on a one-to-one basis. (The Block)