US Senator proposes new stablecoin bill to ban unsupported algorithmic stablecoins

Odaily News U.S. Senators Kirsten Gillibrand and Cynthia Lummis today introduced the Lummis-Gillibrand Payment Stablecoin Act. The bill would require stablecoin issuers to hold a one-to-one reserve of cash or cash equivalents to back their tokens. According to an official press release, the bill prohibits unbacked algorithmic stablecoins and asserts that neither issuers nor users can use stablecoins for illegal or unauthorized purposes, such as money laundering. (The Block)