The U.S. House and Senate are racing to bring stablecoins out of the shadows

Stablecoins offer all the benefits of crypto without the downsides.

They are pegged to real-world currencies, such as the U.S. dollar, and are supposed to be insulated from wild price swings by their currency pegs.

Some stablecoins have “depegged” from the dollar dozens of times.

Two bills pending in Congress would carve stablecoins out of securities law and the jurisdiction of the Securities and Exchange Commission .

Both bills would allow some stablecoins to opt for state-level regulation instead of federal.

The bills would also create reserve requirements limiting what stablecoins can use as collateral, prohibiting them from investing in riskier assets such as bitcoins.

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