BGOV Bill Analysis: S. 1582, Stablecoin Regulations (3)

Federal rules governing stablecoins would be established under S. 1582, which would allow qualified financial institutions and nonbank entities to issue the digital assets.

Stablecoins are a type of cryptocurrency designed to match the value of another stable asset, with many of the most popular tokens pegged one-to-one with the US dollar. Stablecoins have a market capitalization of over $261 billion as of early July and help facilitate trading of more volatile crypto assets such as Bitcoin.

Under the measure, federal regulators would oversee larger stablecoin issuers, while smaller issuers could choose to be overseen by state-level regulators.

Without ...