Sen. Bill Hagerty Introduces Bipartisan Stablecoin Bill to Regulate Digital Payments

Republican Sen. Bill Hagerty has introduced the Guiding and Establishing National Innovation for US Stablecoins Act, a bill aimed at creating a regulatory framework for stablecoins. The legislation seeks to establish clear standards for stablecoin issuers, requiring them to back payments with assets such as U.S. dollars, Treasury bills, and Federal Reserve notes while mandating monthly audited reports to ensure transparency.

The bill has gained bipartisan support, with Sens. Kirsten Gillibrand (D-N.Y.), Tim Scott (R-S.C.), and Cynthia Lummis (R-Wyo.) joining as cosponsors. It promotes a light-touch regulatory approach and defines the division of oversight between federal and state governments.

This initiative follows a discussion draft Hagerty released in October 2024, which shares similarities with the Clarity for Payment Stablecoins Act from the House of Representatives. That bill, championed by Rep. Maxine Waters (D-Calif.) and former Rep. Patrick McHenry (R-N.C.), stalled due to disagreements over state regulators' roles in stablecoin issuance.

Stablecoin regulation remains a hot topic in Washington, with previous legislative efforts facing obstacles in reaching bipartisan consensus. Hagerty’s proposal aligns with President Donald Trump’s pro-crypto stance, as he has expressed ambitions to position the U.S. as a global leader in digital assets. In August, Trump issued an executive order to establish a federal working group dedicated to creating a national regulatory framework for cryptocurrencies, including stablecoins.

As the crypto industry awaits regulatory clarity, this bill marks a significant step in defining stablecoin oversight while balancing innovation and financial stability.