A draft U.S. Senate bill would require the issuers of USDT and USDC to publish full monthly breakdowns of their reserves, according to Reuters. The proposal is part of a broader push to impose clearer rules on the stablecoin sector as lawmakers move the measure toward a vote.

The legislation would increase disclosure requirements for the two largest dollar-pegged tokens, giving regulators and investors more visibility into the assets backing them. The bill also sets out a separate framework for algorithmic stablecoins, which have drawn greater scrutiny since past market failures rattled confidence in the sector.

Supporters of the measure argue that regular reserve reporting could reduce opacity in a market that has grown quickly with limited oversight. Critics of stablecoins have long warned that weak transparency can leave users exposed if issuers cannot clearly prove the quality and liquidity of their holdings.

If approved, the bill would mark one of the most significant federal efforts to standardize stablecoin disclosure rules in the United States. Its advance reflects growing pressure in Washington to bring crypto-linked payment tokens under tighter supervision without banning them outright.