The outgoing senator said he wanted to shield stablecoin activity from the Fed, which is still debating whether to issue a CBDC. Toomey noted the Fed’s “significant skepticism” of stablecoins.
Outgoing Sen. Pat Toomey, R-PA, introduced a bill Wednesday that would create the first regulatory framework for stablecoins in the U.S. and “guide Congress toward a path for sensible regulation of cryptocurrencies.”
The Stablecoin TRUST Act — the acronym stands for Transparency of Reserves and Uniform Safe Transactions —would require all stablecoins, a type of digital currency designed to be pegged to a fiat money, to be fully backed by liquid assets and would authorize several types of regulated entities to issue stablecoins.
Stablecoin issuers would be subject to standardized disclosure requirements and attestations by registered accounting firms.
The framework would clarify that stablecoins don’t offer interest, are not securities, and would be regulated by the Office of the Comptroller of the Currency (OCC).