- The “Clarity for Payment Stablecoin Act” is under review by the committee.
- If passed, this framework will establish regulations for stablecoins and require them to be backed 1:1 by liquid assets.
At a congressional hearing on July 27, 2023, Republican committee member Peter McHenry presented a new bill entitled the “Clarity for Payment Stablecoin Act.” This proposed legislation seeks to approve and regulate stablecoin issuers while ensuring consumer security by creating a federal floor for stablecoin remittance.
The House Committee on Financial Services is currently reviewing this act. If passed, the committee holds that this act could revolutionize how transactions in the United States are conducted, allowing for much faster and more efficient payments.
The Clarity for Payment Stablecoins Act would require stablecoins to be backed by high-quality liquid assets at a 1:1 ratio and for the public disclosure of monthly reports detailing the total numbers of outstanding stablecoins. Additionally, this act will require stablecoin issuers to maintain certain liquidity levels and prevent stablecoin reserves from being used for leverage or as collateral for loans.
