United States of America: Introduced Clarity for Payment Stablecoins Act of 2023 (HR 4766)

On 20 July 2023, the Clarity for Payment Stablecoins Act of 2023 (HR 4766) was introduced to the US Congress. The Act aims to provide for the regulation of payment stablecoins. It establishes that only authorised payment stablecoin issuers would be allowed to issue stablecoins. Additionally, requirements are imposed on stablecoin issuers such as holding reserves equivalent to the amount of stablecoins issued and establishing procedures for timely redemption of outstanding payment stablecoin. In addition, the Act provides a framework for the supervision of payment stablecoin issuers. Notably, the Act clarifies that stablecoins are not considered securities or commodities.