RESEARCH: United States Stablecoin Regulation 2026

Federal Legislative Landscape and Key Bills

• The GENIUS Act (S. 2281, 118th Congress), reintroduced by Senators Lummis and Gillibrand, is a comprehensive digital assets bill that includes stablecoin provisions—specifically Title VI (Payment Stablecoins). Its status remains pending as of November 2024, with no recorded floor vote. Congress.gov S.2281 Summary

• H.R. 4763, the "Clarity for Payment Stablecoins Act of 2023," advanced out of the House Financial Services Committee on July 27, 2023, by a 34-16 vote. It would create a federal regulatory framework for payment stablecoins, granting the Federal Reserve and state regulators concurrent authority over issuers. House Financial Services Committee Markup

• The Lummis-Gillibrand Responsible Financial Innovation Act (S. 2281) was the first major bipartisan crypto bill to address stablecoins explicitly—requiring 100% reserve backing, public disclosure of reserves, and a federal-state dual regulatory track. Lummis.Gillibrand.Senate.gov

• As of late 2024, no stablecoin-specific federal bill has passed both chambers. The 118th Congress is ending January 3, 2025, meaning all pending bills expire and must be reintroduced in the 119th Congress for 2026 consideration. CRS Report R47607

• The Biden Administration’s "Framework for International Engagement on Digital Assets" (November 2023) directed Treasury to work with international bodies on stablecoin standards, but did not propose domestic legislation. White House Fact Sheet

Federal Agency Jurisdictions and Oversight

• The Securities and Exchange Commission (SEC) continues to assert jurisdiction over stablecoins that may be considered securities, as evidenced by its enforcement actions against issuers (e.g., Binance USD settlement). Chair Gensler stated in April 2023 that "stablecoins may be securities." SEC v. Binance Complaint

• The Commodity Futures Trading Commission (CFTC) has jurisdiction over stablecoins deemed commodities—for example, its 2021 action against Tether (USDT) for misrepresenting reserves led to a $41 million penalty. CFTC Order 21-29

• The Federal Reserve supervises state-member banks and bank holding companies that issue or custody stablecoins. In January 2023, the Fed issued a supervisory letter (SR 23-1) requiring prior notification for any stablecoin-related activities by supervised institutions. Federal Reserve SR 23-1

• The Office of the Comptroller of the Currency (OCC) permits national banks to provide crypto custody services and hold stablecoin reserves under Interpretive Letter 1174 (November 2022). OCC Interpretive Letter 1174

• The Treasury Department (via FinCEN) regulates stablecoin issuers as money services businesses (MSBs) if they engage in money transmission. FinCEN’s 2022 guidance requires MSBs to register, implement AML/KYC programs, and report suspicious activity. FinCEN Guidance FIN-2022-G001

State-Level Regulatory Frameworks – The Patchwork Challenge

• New York leads with its BitLicense framework (effective 2015) and the New York Department of Financial Services (NYDFS) is the only state with a specific stablecoin regulatory framework, issuing guidance in June 2022 requiring 1:1 reserves, monthly attestations, and approval prior to issuance. NYDFS Stablecoin Guidance

• California passed the Digital Financial Assets Law (DFAL) in October 2023 (AB 39), which requires stablecoin issuers to obtain a license from the Department of Financial Protection and Innovation (DFPI) by July 2025, with a grandfather period for existing operators. California DFPI AB 39

• Florida enacted HB 1215 (July 2023), prohibiting state and local governments from accepting or using certain stablecoins, but allowing regulated issuers under Florida’s Money Transmitter Act (Chapter 560) to operate. Florida Legislature HB 1215

• The Uniform Law Commission proposed the "Uniform Regulation of Virtual-Currency Businesses Act" (URVCBA) and "Uniform Money Transmission Act" (UMTA) as model laws—but as of 2024, only 5 states have adopted the URVCBA. The lack of adoption means no national reciprocity exists. Uniform Law Commission

• A multi-state licensing initiative exists through the Conference of State Bank Supervisors (CSBS) "Money Transmitter Modernization Project" (2022), which aims to create a single-state application process for money transmission licenses, but it does not yet include stablecoin-specific provisions. CSBS Money Transmitter Modernization

• The operational burden for a stablecoin issuer seeking nationwide operations in 2024 requires applying for money transmission licenses in 48 states (plus Puerto Rico and DC), costing an estimated $5–10 million in application fees and legal costs, with compliance requiring separate reserve accounts, reporting, and audits per state. Coinbase State Licensing Overview

Outlook for Federal Legislation by 2026

• A comprehensive stablecoin bill is unlikely before the 2024 elections, but the 119th Congress (2025–2027) could revive H.R. 4763 or the GENIUS Act provisions. Industry lobbyists estimate a 40–60% chance of a federal stablecoin law by mid-2026. Politico Crypto Regulation Timeline

• Federal Reserve wholesale CBDC research continues, but Chair Powell has stated that a wholesale CBDC could be "years away" and that the Fed would not issue a retail CBDC without congressional authorization. This leaves room for private stablecoins. Federal Reserve CBDC Update

• State-level enforcement is accelerating: NYDFS has taken enforcement actions against Paxos (February 2023) and others for insufficient stablecoin reserves, and California’s DFPI is expected to begin active supervision under DFAL by July 2025. NYDFS Paxos Consent Order

• The Treasury Department continues to lead international coordination through the Financial Stability Board (FSB), which published high-level recommendations for stablecoin regulation in October 2022. The U.S. is using these as a template for domestic policy. FSB Stablecoin Recommendations

• Practical steps for stakeholders by 2026 include: (1) monitoring the 119th Congress for reintroduction of H.R. 4763 or a Senate companion bill, (2) preparing for compliance with California DFAL by July 2025, (3) maintaining NYDFS approval if issuing in New York, (4) participating in CSBS multi-state licensing discussions, and (5) engaging with Treasury’s public comment periods on stablecoin frameworks.

Sources

• Congress.gov S.2281 Summary
• House Financial Services Committee H.R. 4763 Markup
• Lummis-Gillibrand Section-by-Section
• CRS Report R47607 on Digital Assets
• White House International Digital Assets Framework
• SEC v. Binusa Complaint
• CFTC Order 21-29 (Tether)
• Federal Reserve SR 23-1
• OCC Interpretive Letter 1174
• FinCEN Guidance FIN-2022-G001
• NYDFS Stablecoin Guidance
• California DFPI Digital Financial Assets Law AB 39
• Florida Legislature HB 1215
• Uniform Law Commission URVCBA
• CSBS Money Transmitter Modernization Project
• Coinbase State Licensing Overview
• Politico: Crypto Regulation Timeline 2025
• Federal Reserve Chair Powell on CBDC
• NYDFS Paxos Consent Order
• FSB Stablecoin Recommendations