Parliament Calls for Urgent Stablecoin Framework in Australia
The House of Representatives Standing Committee on Economics has released its report, A Level Paying Field, following its inquiry into payment schemes, digital wallets and innovation in the payments sector. While much of the report focuses on card payments, merchant fees and digital wallets, one recommendation stands out for the digital asset sector: Treasury should establish a framework enabling stablecoins to operate as an alternate payment rail within Australia's payments system "as a matter of urgency".
The recommendation comes against the backdrop of a payments system in which non-cash payments worth around $300 billion were made each business day in 2023, equivalent to around 11 per cent of annual GDP.
Stablecoins move into the payments mainstream
Rather than treating stablecoins solely as digital assets, the Committee identified them as a potential alternate payment rail capable of increasing competition, reducing costs and improving efficiency across Australia's payments system, particularly in cross-border payments.
Evidence before the Committee reinforced this characterisation, with stakeholders increasingly describing stablecoins as a practical payments technology rather than merely a digital asset. Stakeholders highlighted their potential to deliver faster settlement, lower transaction costs, greater transparency and more efficient cross-border payments. The report also notes that established payments providers, including Visa, are already investing in stablecoin-related products and settlement infrastructure. Coinbase Australia pointed to stablecoins' role in retail payments and cross-border settlement, Kraken highlighted near-instant settlement and lower remittance costs, and Macropod/Catena Digital argued stablecoins could reduce intermediaries and interchange layers in payment transactions.
The recommendation sits alongside the Government's broader payments modernisation agenda, including the first tranche of draft legislation, on which consultation concluded in April 2026, proposing reforms to payment service providers, stored value facilities and safeguarding arrangements for payment-related money. Viewed in that context, Recommendation 12 is less about cryptocurrency policy and more about increasing competition, innovation and consumer choice across Australia's payments ecosystem.
Project Acacia provides the foundation
Project Acacia, led by the Reserve Bank of Australia and the Digital Finance CRC, examined the role that emerging forms of digital money and market infrastructure could play in wholesale tokenised asset markets. Participants tested tokenised asset transactions recorded on digital ledgers using stablecoins, bank-issued deposit tokens and a pilot wholesale CBDC across 24 use cases, comprising 19 pilot use cases and five proof-of-concept cases.
By linking the recommendation to Project Acacia, the Committee appears to be signalling that any future stablecoin framework may be informed by the lessons emerging from Australia's tokenised asset market initiatives.
Why it matters
While the report does not change the law, it is an important policy signal. The Committee has expressly recommended that Treasury establish a framework enabling stablecoins to operate as an alternate payment rail within Australia's payments system. For stablecoin issuers, exchanges, custodians, payment service providers and tokenisation projects, the message is that the policy conversation is increasingly shifting from whether stablecoins should be accommodated, to how they might be integrated into Australia's regulated payments system. It lands as major international markets are moving from stablecoin policy debates to legislative and licensing frameworks, including the EU's MiCA regime, the US federal stablecoin GENIUS framework and emerging licensing models in Asia. Australia itself has been consulting on payments reforms that would provide a regulatory framework for issuing payment stablecoins (so-called tokenised stored value facilities) and which, for the most part, treat stablecoins like money.
Debanking remains on the policy agenda
Although stablecoins were the headline digital asset recommendation, the Committee also revisited the issue of debanking. The report notes ongoing concerns regarding access to banking services for fintech and digital asset businesses and references earlier recommendations of the Council of Financial Regulators.
The Committee did not recommend specific reforms. However, it indicated that broader licensing reform may improve legitimacy for affected businesses and help address some of the drivers of banking access challenges. The report stops short of suggesting that stablecoin reform would resolve debanking challenges. Nevertheless, greater regulatory clarity may assist digital asset businesses engaging with banks and other financial institutions.
Looking ahead
These developments will be important for stablecoin issuers, exchanges, custodians, payment service providers and tokenisation projects considering product design, licensing strategy and regulatory engagement in Australia. Piper Alderman’s Blockchain Group will continue to monitor Treasury’s response and the interaction between stablecoin reform, payments modernisation and digital asset regulation.
Written by Katrina Sharman and Steven Pettigrove
