Stablecoin

Jerry

2024

Coin

Coin Center, a US-based cryptocurrency advocacy, objected to the Lummis-Gillibrand Payment Stablecoin Act and claimed it was unhealthy for constitutional rights.
Cynthia Lummis and Kirsten Gillibrand introduced a bill to create a regulatory framework for stablecoins. The bill was opposed by Coin advocacy, which argued that it violates the First Amendment and harms constitutional rights. A complete ban on algorithmic payment stablecoins is emerging as the main reason behind the opposition.
<h2 class="wp-block-heading" id="strong-the-lummis-gillibrand-payment-stablecoin-act-strong">The Lummis-Gillibrand Payment Stablecoin Act</h2>
On April 19, Jerry Brito, Director of Coin Center advocacy, spoke against the Lummis-Gillibrand Payment Stablecoin Act, citing it as an infringement on constitutional rights.
Brito favors regulating stablecoin as it opens doors to innovation within a clear legislative framework. The ban on algorithmic payment stablecoins is unacceptable to Brito.
Kirsten Gillibrand and Cynthia Lummis, the US senators, introduced the Lummis-Gillibrand Payment Stablecoin Act and announced the same over X (formerly Twitter).
<blockquote class="twitter-tweet">
 I'm proud to join <a href="https://twitter.com/SenLummis?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@SenLummis</a> to introduce the Payment Stablecoin Act. Passing a regulatory framework for stablecoins is critical to protecting consumers, promoting responsible innovation, and cracking down on money laundering and illicit finance. <a href="https://t.co/UP9pk0uQkt" rel="noopener noreferrer nofollow">https://t.co/UP9pk0uQkt</a> <a href="https://t.co/lIqA3rwQXN" rel="noopener noreferrer nofollow">pic.twitter.com/lIqA3rwQXN</a>— Sen. Kirsten Gillibrand (@gillibrandny) <a href="https://twitter.com/gillibrandny/status/1780567473386909881?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 17, 2024</a>
</blockquote>
The legislation prohibited unbacked, algorithmic stablecoins, required one-to-one reserves for issuers, developed state and federal regulatory rules for companies, and prevented the illegal use of stablecoins.&nbsp;
The bill came after TerraUSD failed to sustain a fixed exchange rate with the dollar, triggering a significant downturn in the<a href="https://www.thecoinrepublic.com/2024/04/08/how-precise-is-the-prediction-of-ripples-ceo-on-crypto-market/" target="_blank" rel="noopener noreferrer nofollow"> crypto market</a> in 2022. This worsened the market situation and resulted in several bankruptcy declarations and investigations.&nbsp;
<figure class="wp-block-image size-large is-resized"><a href="https://w3wc.io/?no" rel="noopener noreferrer nofollow"><img decoding="async" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/04/freecompress-1440x90-gif-1-1.gif" alt="" style="width: 100%;height:auto"></a>
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Moreover, the US House of Representatives and the Senate are working to introduce legislative solutions to stablecoins. However, the House-proposed stablecoin bill differs from the bill proposed by the Senate and supports innovation.
The US House of Representatives supports a two-year moratorium for algorithmic stablecoins instead of an outright ban, whereas the Senate proposed a complete ban on algorithmic payment stablecoins.
<h3 class="wp-block-heading" id="strong-coin-center-advocacy-s-vote-to-the-us-house-of-representatives-strong">Coin Center Advocacy’s Vote To The US House Of Representatives</h3>
Coin Center Advocacy supports the US House of Representatives proposal as it is more attainable and showcases the desire for progress. Flexible registration for crypto to ensure development and compliance with rules strengthened the proposal.&nbsp;
On July 28, the committee introduced two bills, including the Payment Stablecoins Act and the Keep Your Coins Act.&nbsp;
Both bills’ motives are to offer regulations on the issuance of payment stablecoins and ensure maintained custody of the digital assets by the users.
According to Coin Center Advocacy, these bills are sufficient to fight the risks and challenges in the stablecoin market. Also, under the existing regulations, innovations and inventions are possible, as Coin Center envisions.

Stablecoin Bill Is An Infringement On Rights, Says Coin Advocacy

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Thecoinrepublic.com

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