Abstract: Stablecoins are digital tokens designed to maintain a stable value. Over the past few years, stablecoins have become an increasingly important part of the digital asset ecosystem. They also pose both opportunities for payments innovation and risks for the wider financial system. This paper explores the essential components of a comprehensive regulatory framework for stablecoins in the United States, comparing the strengths and weaknesses of three legislative proposals being considered in Congress as of March 1, 2025: the GENIUS Act, the STABLE Act, and the McHenry-Waters Bill. The paper identifies five foundational components necessary for effective stablecoin regulation: ensuring safety and soundness through strict prudential standards and an efficient resolution framework, preventing illicit finance, sensibly allocating regulatory responsibilities between federal and state authorities, promoting competition among payment platforms, and establishing clear regulatory boundaries. More broadly, the paper highlights the practical necessity of a hybrid regulatory approach that integrates federal oversight with existing state-level regulatory frameworks and emphasizes the importance of technological neutrality and non-discriminatory access to payment network infrastructure. The paper concludes with a summary of recommendations. These recommendations include a bespoke resolution framework for stablecoin issuers, robust anti-money laundering requirements, and clear regulatory boundaries that prevent regulatory arbitrage. While the McHenry-Waters Bill is identified as the most comprehensive legislative proposal, the authors present their recommendations as proposed amendments to the GENIUS Act, which at the time of writing is under active consideration in the United States Senate. We also include in an appendix our subsequent analysis of and recommendations in response to the marked-up version of the GENIUS Act voted out of the Senate Banking Committee on March 13, 2025. Overall, the paper aims to inform policymakers about how to craft legislation that promotes innovation while safeguarding financial stability and national security interests.