Global: US Lawmakers Propose Stablecoin Bill to Reinforce Dollar Dominance

House Representatives French Hill and Bryan Steil have introduced a discussion draft bill designed to establish a regulatory framework for dollar-pegged payment stablecoins in the United States. The proposed legislation aims to bolster the global standing of the US dollar by temporarily banning the issuance of “endogenously collateralized stablecoins”—those backed by self-issued digital assets—for two years.

In addition, the bill would require the US Treasury Department to conduct a comprehensive study on stablecoins, clarifying the regulatory landscape and paving the way for a safe, innovative ecosystem for these digital assets. Speaking about the initiative, House Financial Services Committee Chairman French Hill stressed that the draft is intended to create a clear federal pathway for stablecoin issuers. He added that lawmakers would work closely with the Trump administration, as well as both chambers of Congress, to “get this right” and deliver a dollar-backed stablecoin for the American people.

This legislative proposal follows confirmation from the Trump administration that it intends to regulate stablecoins domestically. President Donald Trump’s Crypto Czar, David Sacks, recently emphasized that properly regulated stablecoins could help extend the international dominance of the US dollar.

Industry observers have offered mixed views on these developments. While some interpret the administration’s actions as a pro-crypto signal, others argue that the primary objective is to ensure that the US dollar retains its status as the world’s reserve currency. In a recent interview, attorney David Lesperance noted that the executive order on stablecoins was designed to position the United States as a leader in digital asset development—but that support for this initiative might wane if it ever threatens the dollar’s global supremacy.

Reinforcing the sentiment, Hill noted that a well-defined regulatory framework for payment stablecoins could spur innovation, protect consumers and investors, and further cement the US dollar’s position on the world stage. Senate Banking Committee Chairman Tim Scott also underlined the critical importance of establishing such rules to promote US innovation while safeguarding the global standing of the dollar.

This legislative effort is part of a broader push to regulate digital assets. On February 4, Senator Bill Hagerty introduced the “Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act,” a bill that echoes the administration’s pledge to make the US a global crypto hub. Supported by senators Tim Scott, Kirsten Gillibrand, and Cynthia Lummis, the GENIUS Act aims to foster innovation, drive demand for US Treasurys, and enhance transaction efficiency by bringing stablecoins under a clear regulatory framework.

Together, these initiatives underscore a coordinated effort by US lawmakers and regulators to create a pro-growth, secure environment for stablecoins—one that not only nurtures innovation but also reinforces the dominance of the US dollar in the global financial system.