The Arizona Republican says making the switch would save the government billions in printing costs.
But he also hopes the bill would benefit a group not often considered by lawmakers -- strippers.
McCain recently joked that phasing out dollars bills in favor of coins would benefit the dancers, allowing them to get larger bills like five, tens, even hundreds.
His comments were in response to a strip club owner's complaints about McCain's bill.
Supporters of the legislation say phasing out the dollar bill would save the country nearly $14 billion over 30 years.