Comparison of Stablecoin Proposals

Key Insights

• All draft proposals would require issuers to back payment stablecoins with highly liquid reserve assets on a 1:1 basis and comply with minimum disclosure, redemption, and capital requirements, though specific requirements vary across proposals.
• Each proposal provides a pathway for depository institutions (banks and credit unions) and nonbank entities to issue stablecoins subject to a federal regulator’s approval and oversight.
• Each proposal provides a pathway for issuers approved by a state regulator, but unlike other proposals, the Clarity for Payment Stablecoins Act of 2023 would not require a federal regulator to approve state-approved issuers.
• The Clarity for Payment Stablecoins Act passed the House Financial Services Committee in late July with unanimous Republican support and five Democrat votes.
• For stablecoin legislation to pass this Congress, Republicans and Democrats in Congress, along with the White House, will need to resolve disagreements over the extent to which federal regulators should be able to approve and oversee state-qualified issuers.

Background