Senators Lummis and Gillibrand Push for Stablecoin Regulation
Senators Cynthia Lummis and Kirsten Gillibrand have proposed a legislative framework for regulating payment-oriented stablecoins.
On this page
Senators Cynthia Lummis and Kirsten Gillibrand have proposed a legislative framework for regulating payment-oriented stablecoins.
The bill defines stablecoins as any digital asset pegged to the dollar and utilized for payment purposes, explicitly excluding them from being treated as securities.
State-authorized institutions and Federal Reserve-registered non-depository trusts could issue stablecoins, with an issuance limit of $10 billion for the latter. The new regulations would also require U.S. issuers to maintain and disclose their reserves.
The proposal notably prohibits the use of algorithmic stablecoins, where price stability is algorithmically managed rather than backed by other assets.
This is part of several regulations for the digital asset market proposed by Senators Lummis and Gillibrand, none of which have been enacted so far.
The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.
Articles by this author
