A crypto advocacy group, Coin Center, has expressed concerns that a proposed stablecoin bill could violate free speech rights.
Ban on Algorithmic Stablecoins
The bipartisan bill, introduced by Senators Cynthia Lummis and Kirsten Gillibrand, would ban “algorithmic payment stablecoins” like Terra’s UST. Coin Center argues that this ban is unconstitutional because algorithmic stablecoins can be “fully decentralized, with no issuers or promoters making any promises.”
Alternative to Ban
Instead of a ban, Coin Center suggests requiring algorithmic stablecoins and their issuers to register with the SEC. They argue that this would provide oversight without infringing on free speech.
First Amendment Protection
Coin Center emphasizes that banning decentralized algorithmic stablecoins is akin to banning computer code, which is protected by the First Amendment. They contend that the government has not shown a compelling interest in restricting this type of speech.
Conclusion
Coin Center believes that the Lummis-Gillibrand bill is not narrowly tailored and that there are more reasonable approaches to regulating algorithmic stablecoins. They urge the government to consider alternative measures that protect free speech while ensuring investor safety.
