The United States Congress has passed a historic law on cryptocurrencies, establishing a regulatory framework for stablecoins.

These stablecoins are a type of cryptocurrency backed by assets. The law requires stablecoin issuers to comply with existing laws and that stablecoins maintaining the same price as the US dollar (USD) be backed by liquid reserves. A provision of the law prohibits members of Congress and their families from profiting from stablecoins.

The regulation of stablecoins issued by banks should be considered a banking product, subject only to the regulation of prudential banking regulators.