TD Cowen said that the Lummis-Gillibrand Payment Stablecoin Act, introduced last week, would benefit the stablecoin issuers.
Lummis-Gillibrand Bill, introduced by Cynthia Lummis and Kirsten Gillibrand on April 17, aims to regulate the stablecoins. A few agencies and regulatory bodies favor the bill, whereas some oppose it because of the banning of algorithmic stablecoins. Advocacy Group Coin Center claimed the bill was a ‘bad policy’ whereas TD Cowen, an investment bank, came in support.
What Does Lummis-Gillibrand Bill Say?
Lummis-Gillibrand Bill, introduced on April 17, prohibits unbacked, algorithmic stablecoins. Additionally, issuers must hold one-to-one cash or cash-equivalent reserves to back the stablecoins.
The bill also ensures that neither the users nor individuals can use the stablecoins for illicit or unauthorized purposes, including money laundering. Maintaining the US dollar dominance, encouraging responsible innovation, and safeguarding consumers are s
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