Senator Kirsten Gillibrand and Senator Cynthia Lummis are collaborating on forthcoming stablecoin regulation legislation. The new legislation is expected to be introduced in the coming days or next week. The focus of the initiative is to leverage cryptocurrencies’ capabilities and realize Bitcoin’s purpose as a transactional currency. This legislation could potentially allow non-bank entities to issue stablecoins.

The development of the legislative framework involved consultations with key financial regulatory bodies such as the Federal Reserve, the U.S. Treasury, and the New York State Department of Financial Services. Senators Lummis and Gillibrand had previously introduced the Responsible Financial Innovation Act, which emphasizes robust oversight by state and federal regulators to prevent malpractices and promote a conducive environment for growth and innovation. The proposal also requires issuers to maintain a one-to-one reserve for their stablecoins.

Senator Gillibrand emphasized the importance of garnering broad support across party and chamber lines for the successful implementation of the legislation. Stay tuned for more updates on stablecoin regulation and its impact on the cryptocurrency market.

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