Under this law, the Federal Reserve and the Office of the Comptroller of the Currency (OCC), a branch of the U.S. Treasury Department, are respectively responsible for overseeing the issuance of stablecoins by large banks and non-bank institutions. Issuance of payment-type stablecoins requires at least a 1:1 backing of reserve assets, which can include US dollars, demand deposits, U.S. Treasury securities, proceeds from repurchase agreements, reverse repurchase agreements, securities issued by investment companies, and other liquid assets issued by the federal government. Foreign payment-type stablecoins can be bought, sold, and used in the United States after meeting technical and regulatory requirements.

The law also requires the U.S. Treasury Secretary to lead a study on non-payment-type stablecoins and submit a report to Congress within one year of the law’s implementation. The U.S. Senate and House of Representatives passed the bill on June 17 and July 17 of this year, respectively.