A newly introduced bill in the Senate would be beneficial to stablecoin issuers, according to a note from investment bank TD Cowen.

The Lummis-Gillibrand Payment Stablecoin Act, introduced last week by Sens. Kirsten Gillibrand, D-N.Y., and Cynthia Lummis, R-Wyo., would create "clear rules of the road," the bank said in a note on Monday.

"Lummis-Gillibrand, in our view, would be positive for stable coin issuers as it would establish clear rules of the road. It also would be symbolically significant for crypto in general as it would be the first constructive crypto legislation from Congress," said the TD Cowen Washington Research Group, led by Jaret Seiberg.

The bill, if passed, will require stablecoin issuers to hold one-to-one cash or cash-equivalent reserves to back their token. It …