New Bill Introduced to Regulate Stablecoins

Senators Kirsten Gillibrand and Cynthia Lummis introduced a bill for regulating stablecoins.

The bill requires stablecoins to be backed one-to-one by reserves and prohibits unbacked stablecoins.

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It aims to prevent illicit uses of stablecoins like money laundering and finance for illegal activities.

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[{"selector":"#anim-a6f5fa2b-fb72-4063-bf5b-dc58e0f4fde5 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] State non-depository trust companies can issue up to $10 billion in stablecoins, and authorized institutions can issue unlimited amounts under certain rules.

[{"selector":"#anim-2232e32a-251b-44e9-a586-6380e904e0e4 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Proper custody practices for stablecoin issuers are highlighted as crucial, especially after the FTX incident.

[{"selector":"#anim-03d782d1-f8b8-4941-9663-50aefb66e99e [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Senator Sherrod Brown plans to address concerns and work on a stablecoin bill, but didn't mention Gillibrand's and Lummis' efforts specifically. Learn more