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Stablecoin Transparency Act

The Stablecoin Transparency Act (H.R.7328) was a bill introduced on March 31, 2022 by Senator Bill Hagerty (R-TN) along with a companion bill in the US Senate (S.3970) introduced by Rep Trey Hollingsworth.

This bill requires a stablecoin issuer to hold all reserves associated with each fiat currency-backed stablecoin they issue in (1) certain government securities; (2) fully collateralized security repurchase agreements, or (3) U.S. dollars or other nondigital currency. A fiat currency-backed stablecoin is a digital asset backed by a nondigital currency and is redeemable on a one-to-one basis in that currency. Each stablecoin issuer must publish monthly on their website a report on the reserves held by the issuer that has been audited by a third party.