Lummis-Gillibrand Payment Stablecoin Act
On Friday, pro-crypto group Coin Center criticized the Lummis-Gillibrand Payment Stablecoin Act, calling it unconstitutional and anti-innovation. The bill aims to regulate stablecoins, which have gained popularity as a substitute for the US dollar.
Key Provisions
The bill requires stablecoin issuers to:
- Comply with anti-money laundering and sanction regulations
- Maintain one-to-one reserves, banning algorithmic stablecoins
Coin Center’s Objections
Coin Center argues that:
- Banning algorithmic stablecoins violates the First Amendment’s protection of free speech.
- A total ban is unnecessary and stifles innovation.
Alternative Solutions
Coin Center suggests alternative measures, such as:
- Requiring issuers of algorithmic stablecoins to register with the SEC
- Imposing a two-year moratorium on new algorithmic stablecoins
Stablecoin Market Growth
Despite the regulatory uncertainty, the global stablecoin market has grown by 22% in 2024. Tether USD (USDT) remains the dominant stablecoin, with a 69% market share.
