U.S. House of Representatives Representatives French Hill and Bryan Steil have introduced a discussion draft that seeks to regulate payment stablecoins. These stablecoins are digital assets pegged to the U.S. dollar. The proposed legislation would establish a structured framework for issuing and managing these digital assets.

One of the key provisions in the draft is a two-year ban on self-collateralized stablecoins. This means that these digital currencies cannot be backed by self-issued digital assets. This restriction is intended to prevent instability in the financial system and ensure that stablecoins have reliable backing.
In addition, the draft requires the U.S. Treasury to conduct a comprehensive study on the impact of stablecoins. Lawmakers believe that such a study will provide important insights into how digital currencies affect financial markets and consumer protection.

Trump administration seeks to bring digital assets into the country
The introduction of the draft is consistent with the Trump administration's growing focus on regulating and integrating stablecoins into the U.S. financial system. House Financial Services Committee Chairman French Hill said the goal is to work with the Trump administration, the House of Representatives, and the Senate to ultimately establish a system that can issue federally regulated, dollar-backed digital assets.
David Sachs, a top cryptocurrency adviser to President Donald Trump, said stablecoins could help strengthen the dollar’s position in the global economy, a view that suggests the administration sees digital assets as a tool to maintain the dollar’s influence in international finance.

Stablecoin regulation aims to protect the dollar’s status
The push for stablecoin regulation is growing amid concerns about the U.S. dollar’s role as the world’s main reserve currency. While some observers see Trump’s recent executive order on cryptocurrencies as a sign of support for cryptocurrencies, others believe the administration’s main motivation is to protect the dollar’s global status.
Matthew Sigel, head of digital asset research firm VanEck, also stressed that establishing a framework will provide clear regulations for issuers. Clear regulation will promote technological progress and consolidate the global leadership of the US dollar.

Senate Banking Committee Chairman Tim Scott also supported the initiative and said that regulating stablecoins is necessary to promote financial innovation and consolidate the dollar’s position in the world economy.

Another Senate bill also aims to regulate stablecoins
The House proposal is not the only effort to introduce regulation. Earlier this month, U.S. Senator Bill Hagerty introduced a separate bill called the United States Stablecoin Orientation and Building a National Innovation Act (GENIUS). The legislation aims to advance Trump’s promise to make the United States a global leader in cryptocurrency.
Haggerty, whose bill has bipartisan support from lawmakers including Tim Scott, Kirsten Gillibrand and Cynthia Loomis, believes stablecoins can increase demand for U.S. Treasuries and make transactions in financial markets more efficient. In a statement, he stressed the need to establish a safe and growth-enhancing regulatory framework to promote innovation and make the United States a global cryptocurrency hub.