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

These stablecoins are a type of cryptocurrency backed by assets. The law requires that stablecoin issuers comply with existing laws and that stablecoins pegged to 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 solely to the regulation of prudential banking regulators.