We applaud Senator Hagerty for his leadership in introducing the Senate version of the Clarity for Payment Stablecoins Act. With the stablecoin market now reaching a market capitalization of $173.35 billion[1], the absence of a clear regulatory framework has held back its full potential. The Clarity for Payment Stablecoins Act is a crucial step forward, providing the regulatory certainty that will allow USD-backed stablecoins to thrive in a safe, predictable environment –empowering both innovators and consumers.

“Stablecoin regulation is no longer just an option—it’s a necessity that’s been overdue for too long. Federal Reserve Chair Powell, Treasury Secretary Yellen, and Deputy Treasury Secretary Adeyemo, to name a few, have all repeatedly called for Congress to provide clear guidelines, and we’ve reached a point where the lack of action is holding back progress. Senator Hagerty’s bill builds on previous efforts and provides the regulatory clarity that the market has long been waiting for. It’s time to move forward, not with hesitation, but with the urgency that this moment demands. We simply cannot afford to let this slip any further,” said Cody Carbone, President of The Digital Chamber

While there are key differences between this proposal and the House companion legislation, led by House Financial Services Committee Chairman Patrick McHenry, both bills share a key strength: preserving the option for state regulation of stablecoin issuers. This flexibility is vital for fostering innovation without compromising regulatory consistency or consumer protection, providing issuers with the certainty they need to operate under federal or state regulation and ensuring that stablecoins can thrive within a robust regulatory framework.