On October 13, 2024, U.S. Senator Bill Hagerty released a discussion draft for the "Clarity of Payment Stablecoins Act of 2024" aimed at establishing regulations for stablecoins in the United States. This draft builds on the earlier proposal by Senator Patrick McHenry, which was cleared by the US House Financial Service Committee in July 2023.
The new legislation stipulates that only stablecoin issuers with a market capitalization exceeding $10 billion will be regulated by federal authorities, while smaller issuers will be monitored by state regulators. Additionally, the Federal Reserve would oversee depository institutions, with the Office of the Comptroller of the Currency regulating federally licensed non-bank issuers.
Hagerty emphasized that the lack of clear regulations has hindered the potential benefits of stablecoins, stating that his draft aims to provide a necessary legal framework to unlock their full potential for Americans.
However, concerns have been raised by members of the crypto community, particularly regarding restrictions on non-licensed stablecoins and the requirement for foreign companies like Tether to obtain licenses to operate in the U.S. Critics argue that these regulations could stifle innovation and fragment the market.
As of now, the total market value of stablecoins stands at $165.66 billion, accounting for 7.59% of the overall cryptocurrency market, with Tether (USDT) leading at a market cap of $119.69 billion.