Lummis-Gillibrand Payment Stablecoin Act Overview
Overview of the bill
The Lummis-Gillibrand Payment Stablecoin Act defines payment stablecoins as dollar-pegged digital assets used for payments or settlements. Key provisions include operational requirements and full reserve backing.
Ban on algorithmic stablecoins
One of the bill's contentious points is the ban on algorithmic stablecoins, raising concerns about stifling innovation and constitutional issues.
Coin Center's concerns on free speech and innovation
Coin Center opposes the ban on algorithmic stablecoins, citing concerns over free speech rights and advocating a more nuanced approach.
The constitutional debate
Critics argue that the bill's ban could infringe on free speech and innovation, emphasizing the need for balanced regulation.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.