The Biden administration has taken the first significant step to impose bank-like oversight on the cryptocurrency companies involved in the issuance of stablecoins, outlining a process that could shape the future of that digital money.

On 1 November, a Treasury-led panel recommended that Congress impose a new regulatory framework around stablecoins — digital currencies pegged to national currencies such as the US dollar — and limit the issuance of such digital assets to banks. The legislative request is a tall order given both chambers of Congress are narrowly divided.