US senators to unveil bipartisan stablecoin legislation

Senator Kirsten Gillibrand revealed ongoing discussions about forthcoming stablecoin regulation.

Gillibrand indicated this was a collaborative effort with Senator Cynthia Lummis, a Republican from Wyoming, to introduce this new legislation shortly, aiming to do so within the coming days or by next week.

Gillibrand highlighted the initiative’s focus on leveraging cryptocurrencies’ capabilities and realizing Bitcoin’s foundational purpose as a transactional currency. The legislation could potentially enable non-bank entities to issue stablecoins.

The development of this legislative framework involved consultations with key financial regulatory bodies, including the Federal Reserve, the U.S. Treasury, and the New York State Department of Financial Services.

Senators Lummis and Gillibrand previously introduced the Lummis-Gillibrand Responsible Financial Innovation Act. The act focuses on ensuring robust oversight by state and federal regulators to eliminate malpractices while fostering an environment conducive to growth and innovation.

Additionally, the proposal mandates that issuers maintain a one-to-one reserve for their stablecoins.

Gillibrand shared insights from the legislative discussions, stressing the importance of garnering broad support across party and chamber lines to ensure the successful implementation of the legislation.