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US Senators Propose Groundbreaking Stablecoin Law 🚀🔒

US Senators Propose Groundbreaking Stablecoin Law 🚀🔒

Proposed Legislation for Regulatory Framework on Payment Stablecoins

Senators Cynthia Lummis and Kirsten Gillibrand have revealed a new proposed legislation

Description of the Lummis-Gillibrand Payment Stablecoin Act

The bipartisan Lummis-Gillibrand Payment Stablecoin Act aims to benefit consumers and foster innovation while upholding the U.S. dollar’s prominence and protecting the dual banking system.

  • Legislation helps meet the evolving financial industry’s demands by establishing a clear framework
  • Ensures stablecoin issuers maintain 1:1 reserves
  • Prohibits the use of unbacked, algorithmic stablecoins
  • Forces dollar-backed stablecoins only
  • Requires compliance with U.S. anti-money laundering and sanctions regulations
  • Promotes the U.S. dollar as a primary digital medium of exchange

Stablecoin Issuers’ Obligations Under the Proposed Law

If the legislation passes, stablecoin issuers must adhere to specific regulations:

  • Maintain one-to-one asset reserves to fully back issued stablecoins
  • Issue dollar-backed stablecoins exclusively
  • Comply with anti-money laundering and sanction laws
  • Safeguard the U.S. dollar’s dominance

Support for the Regulatory Framework

Senator Gillibrand emphasizes the significance of the stablecoin regulatory framework:

  • Crucial for maintaining the U.S. dollar’s dominance
  • Promotes responsible innovation
  • Protects consumers
  • Combats money laundering and illicit finance

Hot Take: Ensuring Stability and Compliance in the Crypto Market

Two U.S. lawmakers have introduced a bipartisan legislation that aims to establish a regulatory framework for payment stablecoins, promoting consumer protection and innovation in the market.

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US Senators Propose Groundbreaking Stablecoin Law 🚀🔒