Beautiful Virgin Islands

Friday, Oct 17, 2025

GOP Senator Toomey proposes new rules for stablecoins

GOP Senator Toomey proposes new rules for stablecoins

Sen. Pat Toomey (R-PA) is proposing a new regulatory framework for stablecoins that would subject them to new federal disclosure requirements.
The new requirements would apply to so-called “payment stablecoins,” defined as a convertible currency designed to maintain a stable value, widely used as a medium of exchange, issued by a centralized entity, and does not pay interest.

Toomey is preparing for the prospect of stablecoins — cryptocurrencies pegged to a fiat currency like the U.S. dollar — transitioning from being used mostly for trading in and out of cryptocurrencies to being used for actual payments of goods and services.

“While today stablecoins facilitate trading with cryptocurrencies, tomorrow stablecoins could be widely used in the physical economy,” said Toomey, who is ranking member of the Senate Banking Committee. “They have the potential, among other things, to speed up payments and automate transactions.”

In new draft legislation, Toomey is proposing creating a new federal license to allow companies to issue stablecoins while still allowing for the state-registered money transmitter status for many existing stablecoin issuers, or insured depository institutions to issue stablecoins.

The bill gives traditional banks the option to separate stablecoin issuance out from other banking activities and tailor rules specifically for overseeing stablecoins.

Legislation would also offer issuers the option to apply for a new federal license issued by the Office of the Comptroller of the Currency specifically for stablecoins that would grant them direct access to the Federal Reserve system. Given that access, issuers with the new OCC license would be subject to capital and liquidity requirements, reserve asset requirements, and risk management requirements.

Toomey’s options for issuers contrast with the Biden administration’s recommendations to only allow banks to issue stablecoins. The thinking is that a bank deposit product – like a stablecoin — offers the promise of redemption of money upon demand. Last November, the President’s working group on financial markets tasked Congress with coming up with new regulations to police stablecoins.

To protect consumers, Toomey is proposing all stablecoin issuers would be subject to standard federal requirements, including disclosing the assets that back the stablecoin on a monthly basis and requiring reserves – assets that back the stablecoins – to be audited and disclosed on a quarterly basis. Issuers would also have to establish policies for redeeming stablecoins and whether redemption requests (getting one’s cash back) would be met on time or with a lag.

The legislation would also require that stablecoin issuers clearly explain that stablecoins that do not offer interest are not securities. Toomey, who takes privacy seriously, would ensure privacy protections to transactions involving stablecoins and other virtual currencies.

Assets backing stablecoins would have to be equal to a market value of 100% of the par value of the payment stablecoins outstanding; and the cash and cash equivalents or high-quality liquid assets backing the stablecoins would need to be denominated in U.S. dollars.

Since these rules only apply to stablecoins used as payments and not securities, securities laws would not apply.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
U.S. Revokes Visas of Foreign Nationals Who ‘Celebrated’ Charlie Kirk’s Assassination
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
DJI Loses Appeal to Remove Pentagon’s ‘Chinese Military Company’ Label
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Australian Prime Minister’s Private Number Exposed Through AI Contact Scraper
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
China’s lesson for the US: it takes more than chips to win the AI race
Australia Faces Demographic Risk as Fertility Falls to Record Low
California County Reinstates Mask Mandate in Health Facilities as Respiratory Illness Risk Rises
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
French Political Turmoil Elevates Marine Le Pen as Rassemblement National Poised for Power
China Unveils Sweeping Rare Earth Export Controls to Shield ‘National Security’
The Davos Set in Decline: Why the World Economic Forum’s Power Must Be Challenged
France: Less Than a Month After His Appointment, the New French Prime Minister Resigns
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Sarah Mullally Becomes First Woman Appointed Archbishop of Canterbury
Mayor in western Germany in intensive care after stabbing
Australian government pays Deloitte nearly half a million dollars for a report built on fabricated quotes, fake citations, and AI-generated nonsense.
US Prosecutors Gained Legal Approval to Hack Telegram Servers
Macron Faces Intensifying Pressure to Resign or Trigger New Elections Amid France’s Political Turmoil
Standard Chartered Names Roberto Hoornweg as Sole Head of Corporate & Investment Banking
UK Asylum Housing Firm Faces Backlash Over £187 Million Profits and Poor Living Conditions
UK Police Crack Major Gang in Smuggling of up to 40,000 Stolen Phones to China
BYD’s UK Sales Soar Nearly Nine-Fold, Making Britain Its Biggest Market Outside China
Trump Proposes Farm Bailout from Tariff Revenues Amid Backlash from Other Industries
FIFA Accuses Malaysia of Forging Citizenship Documents, Suspends Seven Footballers
Latvia to Bar Tourist and Occasional Buses to Russia and Belarus Until 2026
×