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Senators Gillibrand and Lummis Expect To Introduce New Stablecoin Legislation in Coming Days: Report

April 10, 2024

Two US Senators are reportedly looking to introduce new stablecoin regulations sometime this week or next.

According to a new report by Forbes, Senators Kirsten Gillibrand, a Democrat from New York, and Cynthia Lummis, a pro-crypto Republican from Wyoming, announced earlier this week that they together will be introducing new stablecoin regulations.

As stated by Gillibrand, according to Forbes,

“[The goal is] unlocking the potential of crypto and the original aim of Bitcoin as a means of payment. We worked with the Fed, Treasury and the New York State Department of Financial Services to allow nondepository institutions to issue stablecoins while promoting safety and soundness within the industry…

We’re making sure that state and federal regulators have the oversight authority to weed out bad actors while still promoting growth and innovation. And we’re requiring that all issuers make sure that the reserves are back to one-to-one.”

Though negotiations are still taking place, Gillibrand says the legislation aims to propose two distinct paths stablecoin issuers can take. One would allow state and federal charter banks to become stablecoin issuers after going through an approval process.

The other path, which is for nondepository institutions, would give the federal government authority over nonbank state entities while preserving the rights of states to act as primary regulators, according to the report.

“The bill is a product of common sense compromise. It balances the interests of federal, state and industry stakeholders. It will help drive innovation in the cryptocurrency landscape.”

Gillibrand says that stablecoin regulations will unlock the true potential of digital assets and that other Senators, such as Patrick Henry, a Republican from North Carolina, and ranking member Maxine Waters of the House Financial Services Committee, a Democrat from California, are a part of the ongoing negotiations.

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