Clarity for Payment Stablecoins Act of 2023

H.R. 4766, the Clarity for Payment Stablecoins Act of 2023, establishes a federal regulatory framework for "payment stablecoins," which are digital assets designed to maintain a fixed value relative to the U.S. dollar. The bill requires stablecoin issuers to back their digital currency one-to-one with high-quality reserves, such as cash or government securities, and mandates monthly public disclosures of those reserves to ensure they can meet consumer redemption requests.

For everyday citizens, this legislation aims to provide greater consumer protection and financial stability by ensuring that stablecoins used for payments are subject to strict oversight similar to traditional banking or payment services. By clarifying that these specific digital assets are not treated as securities, the bill seeks to provide a clear legal path for businesses to offer stablecoin services while implementing a two-year ban on certain high-risk stablecoin models that lack external collateral.