The US Senate Proposes New Bill on Stablecoins

Senators Kirsten Gillibrand of New York and Cynthia Lummis of Wyoming, representing the Democratic and Republican parties respectively, have jointly introduced a bill in the Senate regulating stablecoin payments.

The proposal aims to prevent unsecured algorithmic “stable coins” and implement measures against money laundering. Under the proposed legislation, companies issuing stablecoins must hold a reserve of cash and cash equivalents in a one-to-one ratio to secure the tokens.

The senators argue that implementing a regulatory framework is crucial to maintain the dominance of the US dollar and promote responsible innovation, all while protecting consumers and preventing illicit financial activities.