US Senate advances stablecoin bill setting reserve and audit rules

A stablecoin bill advanced out of a Senate committee this week with support from both parties, moving the United States closer to a federal framework for dollar-pegged tokens after years of stalled attempts.

What the bill would require

The draft focuses on payment stablecoins — tokens redeemable one-for-one for dollars — and leaves algorithmic designs outside its scope. Its core requirements are straightforward:

• Full reserves. Issuers must hold reserves equal to tokens in circulation, in cash and short-dated Treasuries.
• Monthly attestations. A registered accounting firm must attest to reserve composition every month, with the results published.
• Redemption rights. Holders get a clear legal right to redeem at par, with a defined settlement window.

The licensing split

The most contested provision is structural. Issuers below a size threshold could be supervised by state regulators under standards the federal government would certify, while larger issuers would fall under a federal regulator directly. Supporters call it a workable federalism compromise; critics on the committee warned it could invite a race to the most permissive state.

Why it matters for the market

Stablecoins settle a large share of crypto trading volume, so the rules that govern them shape the plumbing of the entire market. A federal standard with real reserve and audit requirements would:

1. Reduce the tail risk of a large issuer de-pegging.
2. Give banks and payment firms a clearer path to integrate tokens.
3. Pressure offshore issuers to meet a higher bar or lose US access.

The bill still needs a floor vote and reconciliation with any House version, so nothing is settled. But the committee margin suggests the direction of travel is toward regulation rather than prohibition.