Innovation and free speech at risk from Senate’s proposed stablecoin bill, warns Coin Center

Coin Center, a non-profit organization advocating for cryptocurrencies, has raised concerns about the constitutionality of a recently proposed stablecoin bill put forward by Senators Cynthia Lummis and Kirsten Gillibrand. In a blog statement, Coin Center argues that the bill, which includes a ban on algorithmic payment stablecoins, not only stifles innovation but also infringes upon First Amendment rights. The organization warns that such a blanket ban on algorithmic models could impede progress in the crypto industry and asserts that it would be unconstitutional. Coin Center’s statement follows the introduction of the bill, which aims to regulate stablecoins and has been praised for bringing clarity to the market but criticized for its restrictive measures targeting specific models. The bill, developed in collaboration with the Federal Reserve and the New York State Department of Financial Services, requires stablecoin issuers to hold reserves of cash or cash equivalents at a 1:1 ratio and prohibits the issuance of unbacked algorithmic stablecoins in the US market.