#USStablecoinBill

The U.S. is advancing legislation to regulate stablecoins, which are digital assets pegged to traditional currencies like the dollar. One key proposal is the Lummis-Gillibrand Payment Stablecoin Act, introduced in April 2024. It seeks to create clear rules for issuing and managing payment stablecoins. The bill requires issuers to maintain 1:1 reserves and obtain licenses, aiming to protect consumers and ensure financial stability. It distinguishes between bank and non-bank issuers and prohibits algorithmic stablecoins not backed by tangible assets. Lawmakers believe such regulation is critical as stablecoins play a growing role in the digital economy. The bill reflects bipartisan support and is a step toward broader crypto oversight in the U.S.