Senators Lummis and Gillibrand Introduce Comprehensive Stablecoin Legislation

The bipartisan bill aims to regulate stablecoins with stringent requirements, including banning algorithmic stablecoins and enforcing one-to-one asset backing.

Senators Cynthia Lummis and Kirsten Gillibrand unveiled the Lummis-Gillibrand Payment Stablecoin Act, setting detailed regulatory frameworks for stablecoins.
The legislation mandates stablecoin issuers to maintain one-to-one reserves and prohibits the issuance of unbacked, algorithmic stablecoins.
The bill introduces federal and state oversight for stablecoin operations, aiming to preserve the dual banking system and U.S. financial dominance.
Efforts to pass stablecoin legislation have intensified, with bipartisan support and potential inclusion in must-pass FAA reauthorization.
The bill also addresses consumer protection, establishing robust custody practices and an FDIC receivership regime for issuers.