Stablecoin Transparency Act

Stablecoin Transparency Act

This bill requires a stablecoin issuer to hold all reserves associated with each fiat currency-backed stablecoin they issue in (1) certain government securities; (2) fully collateralized security repurchase agreements, or (3) U.S. dollars or other nondigital currency. A fiat currency-backed stablecoin is a digital asset backed by a nondigital currency and is redeemable on a one-to-one basis in that currency.

Each stablecoin issuer must publish monthly on their website a report on the reserves held by the issuer that has been audited by a third party.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3970 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 3970

To establish reporting requirements for issuers of fiat currency-backed 
                  stablecoins, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 31, 2022

  Mr. Hagerty introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To establish reporting requirements for issuers of fiat currency-backed 
                  stablecoins, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stablecoin Transparency Act''.

SEC. 2. STABLECOIN ISSUER REQUIREMENTS.

    (a) Definitions.--In this section:
            (1) Fiat currency-backed stablecoin.--The term ``fiat 
        currency-backed stablecoin'' means a fiat currency-backed 
        digital asset--
                    (A) that maintains price stability by backing the 
                value of the digital asset to a nondigital currency 
                that is denominated in the same currency in which the 
                digital asset is issued; and
                    (B) is redeemable on a one-to-one basis in the 
                denominated currency to which the digital asset is 
                backed.
            (2) Stablecoin issuer.--The term ``stablecoin issuer'' 
        means a person that issues a fiat currency-backed stablecoin.
    (b) Reserves.--Each stablecoin issuer shall hold all reserves 
associated with each fiat currency-backed stablecoin issued by such 
stablecoin issuer in--
            (1) government securities that have maturities of not 
        longer than 12 months;
            (2) fully collateralized security repurchase agreements; or
            (3) United States dollars or any other nondigital currency.
    (c) Reserve Reports.--Not later than 30 days after the date of 
enactment of this Act and every 30 days thereafter, each stablecoin 
issuer shall publish on the website of the stablecoin issuer a report 
on the reserves held by the stablecoin issuer that has been audited by 
a third-party auditor.
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