Advocates Fight Against Bill Restricting Stablecoin Offerings in the U.S.
The crypto community is pushing back against a bill introduced by Sens. Cynthia Lummis and Kirsten Gillibrand in the U.S. Senate, which would impact stablecoin offerings in the country.
Coin Center’s Response
The nonprofit organization, Coin Center, has raised concerns about the proposed bill and its potential consequences on the cryptocurrency industry. Here are some key points from their response:
- Requirement for stablecoins to be backed by one-to-one cash reserves
- Ban on algorithmic stablecoins
- Federal and state authorities responsible for stablecoin chartering and enforcement
The Argument Against the Bill
Coin Center believes that the bill poses significant challenges to innovation and free speech within the industry. Here are some reasons why:
- Outright ban on a particular business model
- Threat to innovation in the U.S. cryptocurrency sector
- Issue of banning algorithmic stablecoins, described as a ban on code
Protecting Free Speech
The organization insists that the prohibition of algorithmic stablecoins infringes on free speech rights protected by the U.S. Constitution. Here are their arguments:
- Banning code and algorithms restricts protected speech
- Constitutionality of the government’s actions under scrutiny
Coin Center’s Proposal
Coin Center has suggested an alternative approach to the bill, advocating for a two-year moratorium on algorithmic stablecoins rather than a permanent ban. The proposal aims to safeguard existing projects and encourage innovation within the industry.
Industry Advocacy
Various industry advocates, including the Blockchain Association (BA), have expressed concerns over the bill. Here are some points raised by industry advocates:
- Offering guidance on the bill’s framework
- Ready to provide feedback and engage in dialogue with lawmakers
- Emphasizing the importance of collaboration and industry input
Hot Take: Industry Pushback
The crypto community’s response to the proposed bill reflects a strong commitment to protecting innovation and free speech within the industry. Advocates are actively engaging with lawmakers to ensure that any regulatory framework supports growth and development in the sector.
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