According to TD Cowen, an investment firm, the US Senate has proposed new stablecoin regulations that could be advantageous to the issuers.
TD Cowen claims that the bill represents a significant advancement in Congress’s regulation of cryptocurrencycurrencies, which is critical for this industry.
If the measure passes, it might open the door for banks and stablecoin issuers to collaborate. However, there will probably be challenges for the statute, such as the need to lobby Congress.
The Lummis-Gillibrand Payment Stablecoin Act, which was proposed by Senators Kirsten Gillibrand and Cynthia Lummis, contains explicit rules that prohibit algorithmic stablecoins and mandate that stablecoin issuers maintain 1:1 ratio reserves.
Nevertheless, advocacy organizations such as Coin Center voice their worries, especially with relation to the proposed prohibition on algorithmic stablecoins, which they contend violates the constitution.
In the House, Chair Patrick McHenry and Representative Maxine Waters are still negotiating a stablecoin regulatory framework. TD Cowen offers an alternative that resembles the Senate measure.
Read also: Stablecoin Regulation Bill’s Passage Uncertain Amid Bipartisan Disputes
