US lawmakers propose stablecoin bill to boost dollar dominance

US Representatives French Hill and Bryan Steil have released a discussion draft for a bill that would establish a regulatory framework for dollar-pegged payment stablecoins in the United States.

The legislation would impose a two-year moratorium on issuing an “endogenously collateralized stablecoin,” meaning issuers would be prohibited from creating stablecoins backed by self-issued digital assets.

In addition, it would require the US Treasury Department to facilitate a study on stablecoins. 

In a news release, House Financial Services Committee Chairman Hill said the discussion draft would clarify payment stablecoins rules and ensure a federal path for issuers. He said they would work with the Trump administration, the House and Senate to “get this right” and “deliver a dollar-backed stablecoin for the American people.”

The release of the draft bill follows confirmation from the Trump administration that it plans to regulate and bring stablecoins onshore. President Donald Trump’s Crypto Czar David Sacks said stablecoins could “extend the dollar’s dominance internationally.”