Creates federal rules for payment stablecoins, digital tokens redeemable at a fixed value

§1What it does

Why this matters: A plain-English description of the bill as it was voted on, written by us from the official summary and text.

✎ Drafted by AI from the public sources cited. Each sentence links to its source.

This law sets up a federal regulatory system for payment stablecoins, digital assets that the issuer must redeem for a fixed value, and allows only approved issuers to offer them to people in the United States.^2,3 Approved issuers must be subsidiaries of federally insured depository institutions such as banks, or nonbank companies approved by federal or state regulators, and state oversight is limited to issuers with $10 billion or less in stablecoins.³ Issuers must back their stablecoins one-to-one with U.S. dollars or similarly liquid assets, publish their redemption policies, and disclose the makeup of their reserves every month.³ Approved stablecoins are not treated as securities or commodities, but issuers must follow federal anti-money-laundering law, and knowingly issuing a stablecoin without approval can bring a fine of up to $1 million per violation and up to five years in prison.³

§2Status

§3How Congress voted

Why this matters: The official count.