Discussion draft proposes framework for US dollar-backed payment stablecoins

House Financial Services Committee Chairman French Hill and Digital Assets Subcommittee Chairman Bryan Steil have released a discussion draft of legislation aimed at establishing a framework for the issuance and operation of dollar-denominated payment stablecoins in the U.S. This proposal seeks to provide clarity and regulatory pathways for stablecoin issuers.

Chairman Hill commented, “Building upon our work on digital assets in the last Congress, our discussion draft will provide clarity for payment stablecoins and ensure a federal and state path for stablecoin issuers. Subcommittee Chairman Steil and I look forward to receiving feedback from the public and working in tandem with the Trump Administration and our colleagues in the House and Senate to make sure we get this right and deliver a dollar-backed stablecoin for the American people.”

Subcommittee Chairman Steil added, “By implementing a clear regulatory structure for payment stablecoins, we can support continued innovation, bolster the U.S. dollar’s position as the world’s reserve currency, and protect consumers and investors. I look forward to getting feedback from consumers, issuers, and stakeholders on this draft legislation as we work to provide clear rules of the road for this innovative technology.”

Senate Banking Committee Chairman Tim Scott emphasized, “Creating a regulatory framework for stablecoins is critical to ensuring the industry can innovate and grow here in the United States – while promoting the U.S. dollar’s global position, protecting consumers, and facilitating financial inclusion. That’s why I’ve led stablecoin legislation with my colleagues in the Senate, and I look forward to working with Chairman Hill and our House counterparts to advance a solution to President Trump’s desk.”

Senator Bill Hagerty noted that strong legislation could enhance transaction efficiency: “From enhancing transaction efficiency to driving demand for U.S. Treasuries, the potential benefits of strong stablecoin innovation are immense. We need legislation that establishes a safe and pro-growth regulatory framework that will unleash innovation.”

Senator Cynthia Lummis expressed her willingness to collaborate on bipartisan efforts: “I look forward to working with my friends in the House to pass bipartisan stablecoin legislation that protects our dual banking system.”

The release follows previous legislative efforts such as last Congress's Clarity for Payment Stablecoins Act which passed with bipartisan support. The current proposal builds on these foundations by offering new regulatory frameworks involving both federal oversight by bodies like OCC (Office of Comptroller of Currency) rather than solely relying on Federal Reserve pathways.

Public input is being solicited via electronic submissions at fsc119@mail.house.gov as part of ongoing discussions around this legislative initiative.