H.R. 8498 — Introduced in House

I 117th CONGRESS 2d Session H. R. 8498 IN THE HOUSE OF REPRESENTATIVES July 26, 2022Mr. Hollingsworth introduced the following bill; which was referred to the Committee on Financial Services A BILL To establish reporting requirements for persons who issue fiat currency-backed stablecoins, and for other purposes. 1. Fiat currency-backed stablecoins (a) In general The term fiat currency-backed stablecoin means a fiat currency-backed digital asset— (1) 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 (2) is redeemable on a one-to-one basis in the denominated currency to which the digital asset is backed. (b) Treatment as a security or commodity A fait currency-based stablecoin is not a security (within the meaning given the term in section 3 of the Securities Exchange Act of 1934) or a commodity (within the meaning given the term in section 1a of the Commodity Exchange Act) and may not be regulated as such by the Securities Exchange Commission or the Commodity Futures Trading Commission. 2. 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.