U.S. Senators Plan to Introduce New Stablecoin Legislation for Cryptocurrency Innovation
- Two senators plan new stablecoin legislation to facilitate cryptocurrency as a payment method and allow non-depository entities to issue stablecoins.
- The upcoming legislation by Senators Gillibrand and Lummis aims to enhance industry safety and stability while maintaining oversight to eliminate bad actors.
A recent report indicates that two U.S. senators plan to present new stablecoin legislation, aiming to unlock the potential of cryptocurrencies, achieve the initial objective of Bitcoin as a payment method, permit non-depository entities to issue stablecoins, and enhance the industry's safety and stability.
On April 9, at the Bitcoin Policy Summit held at the National Press Club in Washington, Senator Kirsten Gillibrand (D-N.Y.) announced that discussions are ongoing, but she anticipates introducing new stablecoin legislation by this week or the next, in collaboration with Senator Cynthia Lummis (R-Wyo.). Gillibrand mentioned that the objective is to unlock the potential of cryptocurrency and the foundational goal of Bitcoin as a payment method.
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“We’re making sure that state and federal regulators have the oversight authority to weed out bad actors while still promoting growth and innovation. And we’re requiring that all issuers make sure that the reserves are back to one-to-one,” Gillibrand said in terms of new standalone stablecoin legislation.
Last year, Lummis and Gillibrand reintroduced the Lummis-Gillibrand Responsible Financial Innovation Act. The purpose of this act is to establish a detailed regulatory framework for all cryptocurrency assets.
Edited by Harshajit Sarmah
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