Senator Bill Hagerty (R-TN) to Introduce Stablecoin Bill Backed by Senate Banking Committee Chair Tim Scott (R-SC) and Digital Assets Subcommittee Head Cynthia Lummis (R-WY)

The opening shot is being fired in the new Congress' crypto push with a plan for a Tuesday introduction of a stablecoin oversight bill from Senator Bill Hagerty.

A new bill set to be introduced in Congress on Tuesday will aim to establish a U.S. regulatory framework for issuing dollar-denominated stablecoins, according to a person familiar with the effort.

The legislation, to be introduced by Senator Bill Hagerty (R-TN), will set up the procedures for issuing payment stablecoins, including establishing the Federal Reserve as watchdog for the big bank issuers and the Office of the Comptroller of the Currency as regulator for nonbank issuers of more than $10 billion, the person said.

The legislation additionally outlines the reserves issuers would have to maintain. State regulators would be in place for the smaller issuers, and for larger firms who can seek waivers.

Hagerty, who had shepherded a stablecoin effort in the previous session, is now pushing a bill with the backing of the Senate Banking Committee's new chairman, Tim Scott (R-SC), and the head of its digital assets subcommittee, Cynthia Lummis (R-WY).

That's a big difference from the 2024 effort that couldn't break through the crypto roadblock maintained by previous committee chief Sherrod Brown (D-OH), who was defeated in November's elections.

The opening shot is being fired in the new Congress' crypto push with a plan for a Tuesday introduction of a stablecoin oversight bill from Hagerty. The legislation would set up a U.S. regulatory framework for issuing the dollar-denominated tokens.

Stablecoins are designed as steady cryptocurrency tokens whose price is linked to other assets, usually the dollar. The global stablecoin leader is Tether (USDT), and its U.S. rival is issuer Circle (USDC).

Later on Tuesday, President Donald Trump's crypto czar, David Sacks, is set to lead a press conference with congressional leaders to outline their crypto strategy. This stablecoin effort is expected to be raised at that event.