S. 3970Senate117th Congress (2021-2023)In Committee

Stablecoin Transparency Act

AI-Generated Summary

Updated February 8, 2026 at 10:28 AM UTC

The Stablecoin Transparency Act requires issuers of fiat‑currency‑backed stablecoins to keep their reserves in short‑term government securities, fully collateralized repurchase agreements, or cash, and to publicly disclose audited reserve reports every 30 days. The goal is to increase transparency and protect consumers by ensuring stablecoins are fully backed. The law applies to any person that issues a fiat‑backed stablecoin.

Key Provisions

Defines a “fiat currency‑backed stablecoin” as a digital asset pegged one‑to‑one to a nondigital currency and redeemable at that rate.
Defines a “stablecoin issuer” as any person that issues such a stablecoin.
Requires issuers to hold all reserves in U.S. government securities with maturities of 12 months or less, fully collateralized security repurchase agreements, or U.S. dollars/other nondigital currency.
Mandates that issuers publish a third‑party audited reserve report on their website within 30 days of enactment and then every 30 days thereafter.

Legislative Activity

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2 earlier actions

SenateCommittee Latest Action

Committee on Banking, Housing, and Urban Affairs. Hearings held.

Banking, Housing, and Urban Affairs Committee

May 10, 2022

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SenateIntro Referral

Introduced in Senate

March 31, 2022

SenateIntro Referral

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

March 31, 2022

SenateCommittee

Committee on Banking, Housing, and Urban Affairs. Hearings held.

Banking, Housing, and Urban Affairs Committee

May 10, 2022

Bill Text

Latest available legislative text

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Introduced in SenateIssued March 31, 2022

117th CONGRESS

2d Session

S. 3970

IN THE SENATE OF THE UNITED STATES

March 31, 2022

Mr. Hagerty introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

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

Short title

This Act may be cited 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 the digital asset to a nondigital currency that is denominated in the same currency in which the 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 have maturities of not longer than 12 months;

(2)

fully collateralized security repurchase agreements; or

(3)

United States dollars or any other nondigital currency.

(c)

Reserve reports

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