2024-04-18
Senators Cynthia Lummis and Kirsten Gillibrand have introduced a new bill aimed at regulating stablecoins, a type of cryptocurrency that is pegged to another asset or currency to maintain its value.
The bill outlines operational requirements for stablecoin issuers, including the creation of subsidiaries dedicated to issuing stablecoins and the use of dollar-backed tokens.
It also mandates that stablecoin issuers convert to dollars and disclose their reserve assets to the public.
Additionally, the bill prohibits algorithmic stablecoins, which rely on algorithms to maintain their value.
Senators Lummis and Gillibrand emphasize the importance of a regulatory framework for stablecoins to preserve the dominance of the U.S. dollar and protect consumers.
The bill has a $10 billion limit for non-depository trust institutions issuing payment stablecoins.
The senators have previously introduced bills addressing the digital assets market and sought feedback from regulators and the White House.
Stablecoin legislation has been a focal point for lawmakers in the crypto space, with discussions on potential attachments to must-pass bills.
