U.S. Targets Stablecoin Digital Currency for Banklike Oversight

WASHINGTON—The Biden administration on Monday took the first significant step to impose banklike oversight on the cryptocurrency companies involved in the issuance of stablecoins, outlining a process that could shape the future of that digital money.

A Treasury-led panel recommended that Congress impose a new regulatory framework around stablecoins—digital currencies pegged to national currencies like the U.S. 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.