Overview

• The Treasury Department, Federal Reserve and state banking regulators have begun drafting rules on nonbank stablecoin issuers, focusing on reserve requirements, disclosure protocols and audit controls
• Regulators will decide conditions for nonbank access to Federal Reserve master accounts, a contested issue between stablecoin firms and traditional banks
• Commercial banks are actively lobbying on upcoming regulations and evaluating whether to issue stablecoins through insured depository subsidiaries or separate entities
• The House-passed CLARITY Act for broader digital-asset market structure awaits Senate consideration even as Senate Republicans led by Tim Scott advance a discussion draft aiming for an end-September vote
• Key debates persist over token classification as commodities or securities, determining whether the SEC or CFTC will oversee different segments of the digital-asset market