Toomey Unveils Stablecoin Bill Granting OCC Authority for Payments Charter

Source: American Banker (subscription may be reuired)

The top Republican on the Senate Banking Committee unveiled legislation that would create a new federal license for stablecoin issuers and set baseline standards for consumer protection.

Introduced by Sen. Pat Toomey, R-Pa., on Wednesday as a discussion draft, the Stablecoin Transparency of Reserves and Uniform Safe Transactions (TRUST) Act would allow stablecoin issuers to choose from one of three regulatory regimes, including one novel approach that would authorize the Office of the Comptroller of the Currency to charter a “national limited payment stablecoin issuer.”

In a press release, Toomey said he believed that stablecoins would soon “be widely used in the physical economy. They have the potential, among other things, to speed up payments and automate transactions.” “The proposed regulatory framework I’m releasing today will allow this crypto-innovation to continue flourishing while protecting consumers and minimizing potential risks from stablecoins to the financial system,” Toomey said.