Advocacy group Coin Center has expressed concerns about the Lummis-Gillibrand bill, claiming it would be “bad policy” and potentially unconstitutional.
United States Senators Kirsten Gillibrand and Cynthia Lummis have introduced legislation establishing a regulatory framework for payment stablecoins.
The legislation aims to prohibit “unbacked, algorithmic stablecoins”— likely a nod to TerraUSD (UST) depegging from the U.S. dollar in 2022 — and requires issuers to maintain one-to-one reserves.
It will also “create federal and state regulatory regimes for stablecoin issuers that preserves the dual banking system.”
