On February 16, U.S. Congressman Josh Gotthiemer (NJ-5) released a discussion draft of the Stablecoin Innovation and Protection Act of 2022. The act defines a qualifying Stablecoin as a cryptocurrency that is convertible into U.S. dollars on demand and issued by an insured depository institution such as a bank or a non-bank qualified Stablecoin issuer.
The Act provides that the Office of the Comptroller of the Currency (OCC) has primary oversight powers over both types of stablecoin issuers, and non-bank issuers must hold at least 100% of their reserve assets, including U.S. dollars, U.S. government-issued securities such as U.S. Treasuries ) and such other assets as the Office of the Comptroller of the Currency (OCC) deems appropriate. Cash collateral must be held in a separate Federal Deposit Insurance Corporation (FDIC) insured account.