H.R. 7328 – Reading Mode

117th CONGRESS

2d Session

H. R. 7328

IN THE HOUSE OF REPRESENTATIVES

March 31, 2022

Mr. Hollingsworth introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To establish reporting requirements for issuers of fiat currency-backed stablecoins, and for other purposes.

Short title

This Act may be cited to as the Stablecoin Transparency Act.

Stablecoin issuer requirements

(a)

Definitions

In this section:

(1)

Fiat currency-backed stablecoin

The term fiat currency-backed stablecoin means a fiat currency-backed digital asset—

(A)

that maintains price stability by backing the value of such digital asset to a non-digital currency that is denominated in the same currency as such digital asset is issued; and

(B)

is redeemable on a one-to-one basis in the denominated currency to which the digital asset is backed.

(2)

Stablecoin issuer

The term stablecoin issuer means a person that issues a fiat currency-backed stablecoin.

(b)

Reserves

Each stablecoin issuer shall hold all reserves associated with each fiat currency-backed stablecoin issued by such stablecoin issuer in—

(1)

government securities that mature not more than 12 months;

(2)

fully collateralized security repurchase agreements; and

(3)

United States dollars or any other non-digital currency.

(c)

Reserve reports

Each stablecoin issuer shall, not later than 30 days after the date of the enactment of this Act and every 30 days thereafter, publish on the website of such stablecoin issuer, a report on the reserves held by such stablecoin issuer that has been audited by a third-party auditor.