Republican Senator Pat Toomey (the ranking member of the Senate Banking Committee) has proposed a bill to establish a framework that regulates stablecoins within the United States.

According to a draft released Wednesday, the ‘Stablecoin Transparency of Reserves and Uniform Safe Transactions Act’, otherwise known as the Stablecoin TRUST Act, Proposed the digital assets be identified as “payment stablecoins” — a convertible virtual currency used as a medium of exchange that can be redeemed for fiat by the issuer.