U.S. Senator Proposes New Stablecoin Bill Aiming to Ban Algorithmic Stablecoins

According to ChainCatcher, The Block reported that U.S. Senators Kirsten Gillibrand and Cynthia Lummis have introduced a stablecoin bill.

The bill will require stablecoin issuers to hold a one-to-one cash or cash-equivalent reserve to back their tokens, prohibit unsupported algorithmic stablecoins, and assert that both issuers and users cannot use stablecoins for illegal or unauthorized purposes such as money laundering.

The bill also intends to establish a federal and state regulatory framework for stablecoin issuers to maintain a dual banking system, granting federal and state entities the authority over stablecoin charters and enforcement.