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- US Senators Kirsten Gillibrand and Cynthia Lummis introduced a new stablecoin bill.
- The bill is named “bipartisan Lummis-Gillibrand Payment Stablecoin Act.”
- The goal is to establish a new set of regulations for stablecoin issuers.
Junior United States senators from New York and Wyoming, Kirsten Gillibrand and Cynthia Lummis have introduced a new stablecoin bill in the country to bring clarity in the digital asset space.
In a press release, the lawmakers stated that they have introduced the “bipartisan Lummis-Gillibrand Payment Stablecoin Act” in the United States to establish comprehensive regulations that aim to protect consumers, enable innovation and promote U.S. dollar dominance while preserving the dual banking system.
“Passing a regulatory framework for stablecoins is critical to protecting consumers, promoting responsible innovation, and cracking down on money laundering and illicit finance,” said Gillibrand in an X post.
A one-page explanation of the bill noted that following the collapse of digital asset trading platform FTX, “proper custody practices for issuers are essential.” As a result, the new stablecoin bill will prevent fraudulent practices in the US.
Senator Gillibrand emphasized the importance of establishing a regulatory framework for stablecoins to uphold the US Dollar’s dominance, foster responsible innovation, safeguard consumers, and combat illicit finance.
The bipartisan Lummis-Gillibrand Payment Stablecoin Act, which preserves the dual banking system, mandates one-to-one reserves, prohibits algorithmic stablecoins, and enforces compliance with anti-money laundering and sanctions rules, is expected to garner support in both the Senate and the House.
On the other hand, Senator Lummis echoed these sentiments, highlighting the need for legislation that balances stablecoin regulation with consumer protection and innovation, ensuring the continued dominance of the US dollar and the country’s leadership in financial innovation.
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