This bill sets national rules for “payment stablecoins” (digital tokens meant to hold a steady value). Only approved issuers can create them for people in the U.S. These issuers must keep one-to-one reserves in cash or similar safe assets, publish monthly reports about those reserves, and honor redemptions at a fixed value. Some issuers can choose state regulation if their coins in circulation stay at or below $10 billion, as long as the state rules closely match the federal standards. Coins that meet these rules are not treated like securities, but issuers must follow anti–money laundering laws and have the tech to follow lawful orders, like blocking sanctioned addresses. It is illegal to claim these coins are U.S. government–guaranteed or FDIC insured, and it is illegal to market a product as a payment stablecoin unless it follows this law. The bill also adds protections for customers if an issuer fails, including priority in bankruptcy and quick access to reserve funds for redemptions.

Foreign stablecoins can be offered in the U.S. only if the issuer registers, follows comparable rules in their home country (as determined by Treasury), and meets U.S. oversight and reserve expectations. Only regulated banks or similar entities can hold the reserves or the keys that control these coins. Penalties apply for unapproved issuance and violations. Most parts take effect 18 months after enactment, or sooner if final rules are issued; separate timing applies to the three‑year phase‑in for restricting platforms from offering unapproved coins.

• Who is affected | What changes | When
• Consumers and businesses using stablecoins | Access to coins with clear backing, monthly reserve reports, and stronger redemption rights | After effective date; bankruptcy and redemption protections apply per the law’s updates
• Stablecoin issuers (U.S.) | Must be approved; keep 1:1 reserves; follow AML rules; no misleading “insured” claims; state option up to $10B if rules match | Effective date; ongoing reporting; marketing limits apply immediately under the law’s terms
• Foreign issuers | Must register; meet “comparable” regime; face monitoring and possible delisting; penalties for noncompliance | Treasury rules and determinations within set timelines; ongoing monitoring
• Custodians of reserves/keys | Must be regulated financial institutions or supervised state entities | On effective date and as rules are issued
• Trading platforms | After three years, may not offer unapproved payment stablecoins; must honor foreign‑issuer restrictions | Three‑year window from enactment; additional Treasury actions may accelerate limits