Senator Kirsten Gillibrand has announced ongoing talks regarding upcoming regulations for stablecoins. She mentioned that she is working closely with Senator Cynthia Lummis, a Republican from Wyoming, to introduce this new legislation in the near future, possibly within the next few days or by next week.
Gillibrand emphasized that the focus of the initiative is to harness the capabilities of cryptocurrencies and to fulfill Bitcoin’s original purpose as a transactional currency. The proposed legislation could potentially allow 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 had previously introduced the Lummis-Gillibrand Responsible Financial Innovation Act, which aims to ensure strong oversight by both state and federal regulators to prevent misconduct while fostering an environment that encourages growth and innovation. The proposal also requires issuers to maintain a one-to-one reserve for their stablecoins.
Gillibrand shared insights from the legislative discussions, emphasizing the importance of gaining broad support from both parties and chambers to ensure the successful implementation of the legislation.
For further information, you may be interested in reading about a former Ethereum advisor suing the U.S. for $9.6 billion over dropped extortion charges. Stay updated by following us on Google News.