Senators Propose New Stablecoin Legislation to Shape Crypto Regulation

Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) unveiled new stablecoin legislation, reigniting efforts to establish a comprehensive regulatory framework for crypto assets in the United States.

The 117-page bill introduces definitions and rules for firms that issue payment stablecoins, mandating that they conduct such activities through subsidiaries. Notably, the legislation prohibits the issuance of algorithmic stablecoins and requires stablecoin issuers to maintain one-to-one reserves. The bill also sets a $10 billion cap on state regulators’ supervision of non-depository trust companies in the stablecoin space.

With discussions underway to fold bipartisan stablecoin legislation into a bill reauthorizing the Federal Aviation Administration, there’s optimism for swift action. Senator Lummis, known for her advocacy of cryptocurrencies, emphasizes the urgency of passing stablecoin regulations before political considerations overshadow policy priorities.

Clever Robot News Desk 19^th April 2024