US Senators Cynthia Lummis and Kirsten Gillibrand are teaming up to create a legislative framework for stablecoins, aiming to bring regulatory clarity and investor protection to the stablecoin sector. The proposed bill, a result of months of collaboration, seeks to establish a solid regulatory environment for stablecoins, digital currencies tied to real-world assets to maintain consistent value.
The initiative has received technical support from key financial regulatory bodies, including the New York Department of Financial Services, the Federal Reserve, the Treasury Department, and the National Economic Council. With positive responses from various stakeholders, the senators anticipate formally announcing their legislative efforts soon.
Senator Lummis, a staunch supporter of Bitcoin, has emphasized the need for a balanced approach to cryptocurrency regulation, expressing caution regarding major stablecoins like Tether (USDT). By seeking to offer regulatory clarity and protect investors, this initiative marks a significant milestone in the journey toward a more secure and stable crypto environment.
In related news, Jerome Powell, the Chair of the Federal Reserve, has stated that the US is far from adopting a Central Bank Digital Currency (CBDC), emphasizing privacy and a lack of interest in surveillance. This development highlights the ongoing discussions and debates surrounding the regulation and adoption of digital currencies in the United States.
