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US senators lead charge for stablecoin regulation
Senator Kirsten Gillibrand has unveiled bipartisan efforts towards stablecoin legislation.
Collaborating closely with Senator Cynthia Lummis of Wyoming, a Republican stalwart, Gillibrand disclosed plans to introduce comprehensive legislation soon, potentially within days or the upcoming week.
Gillibrand explained the legislation’s aim to harness the transformative potential of cryptocurrencies, which is the fundamental vision of Bitcoin as a medium for everyday transactions.
Central to the proposed legislation is the potential inclusion of provisions allowing non-bank entities to issue stablecoins, ushering in a new era of financial innovation.
Crucially, the formulation of this legislative framework has entailed extensive consultations with key stakeholders, including the Federal Reserve, the U.S. Treasury, and the New York State Department of Financial Services.
Building upon their previous legislative endeavours, Senator Lummis and Gillibrand have championed the cause of responsible financial innovation through initiatives like the Lummis-Gillibrand Responsible Financial Innovation Act.
Rooted in principles of accountability and transparency, this act aims to establish stringent oversight mechanisms at both state and federal levels to create an environment conducive to sustainable growth and technological advancement.
The proposed legislation mandates that stablecoin issuers maintain a one-to-one reserve, instilling confidence in the stability and reliability of these digital assets.
Gillibrand also stressed the importance of garnering broad bipartisan support across party lines and chambers.
Such consensus-building efforts are seen as crucial for the effective implementation of the proposed legislation to ensure its enduring impact on the rapidly evolving digital finance.