Bipartisan legislation on stablecoins to be introduced by US senators
Senator Kirsten Gillibrand has announced ongoing talks about forthcoming regulations for stablecoins. Gillibrand stated that she is collaborating with Senator Cynthia Lummis, a Republican from Wyoming, to introduce new legislation in the near future. They aim to present the legislation within the next few days or by next week.
Gillibrand emphasized that this initiative focuses on harnessing the capabilities of cryptocurrencies and fulfilling Bitcoin’s original purpose as a currency for transactions. The legislation could potentially allow non-bank entities to issue stablecoins.
The development of this legislative framework involved consultations with important financial regulatory bodies, including the Federal Reserve, the U.S. Treasury, and the New York State Department of Financial Services.
Senators Lummis and Gillibrand have previously introduced the Responsible Financial Innovation Act, also known as the Lummis-Gillibrand Act. This act aims to ensure strong oversight by state and federal regulators in order to eliminate misconduct while fostering an environment that encourages growth and innovation.
Furthermore, the proposal mandates that stablecoin issuers maintain a one-to-one reserve for their stablecoins.
Gillibrand shared insights from the legislative discussions and emphasized the importance of gaining broad support across party lines and both chambers of Congress to ensure successful implementation of the legislation.
