EddieJayonCrypto
24 Apr 24
U.S. Senators Cynthia Lummis and Kirsten Gillibrand introduced a bill addressing the regulation of stablecoins in the U.S. The bill focuses on oversight of stablecoin issuers, consumer protection, and the handling of potential collapses. It also includes provisions for U.S. company-issued stablecoin...
U.S. Senators Cynthia Lummis and Kirsten Gillibrand have introduced a bill aimed at regulating stablecoins in the U.S. The proposed legislation focuses on oversight of stablecoin issuers, consumer protection, and the handling of potential collapses. However, it has raised concerns within the industry about its impact on tokens like DAI. The bill is also limited in addressing foreign company-issued tokens, leaving uncertainty around the legislative timeline. The proposed Lummis-Gillibrand bill creates a framework for state and federal oversight of stablecoin issuers, outlining a process for potential collapses overseen by the Federal Deposit Insurance Corporation (FDIC) and banning algorithmic stablecoins outright. However, industry participants have expressed immediate concerns, pointing to the lack of provisions for crypto-backed tokens like DAI and the blanket ban on algorithmic stablecoins. The bill primarily focuses on stablecoins issued by U.S. companies and is less extensive in addressing foreign company-issued tokens, like Tether (USDT). The bill's future progression and potential impact remain uncertain amidst ongoing legislative discussions. Additionally, lawmakers' focus on stablecoin regulation may face time constraints given the upcoming elections. The potential passage of any legislation may occur during the lame-duck session, possibly attached to must-pass pieces of legislation. How stablecoin legislation efforts may evolve between now and then is uncertain. In other news, the article also highlights several significant developments in the realm of crypto regulations and ongoing legal cases involving prominent figures in the industry. Stay updated with State of Crypto by subscribing to CoinDesk's newsletter for future editions.
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