According to Foresight News, US Senators Kirsten Gillibrand and Cynthia Lummis have proposed a stablecoin bill. The legislation would require stablecoin issuers to hold one-to-one cash or cash equivalents to back their tokens. It also prohibits algorithmic stablecoins that lack backing and asserts that issuers and users cannot use stablecoins for illegal or unauthorized purposes such as money laundering.
The bill also aims to establish a 'federal and state regulatory system to maintain a dual banking system' for stablecoin issuers. This would grant federal and state entities the power over stablecoin charters and enforcement. The proposed legislation is a significant step towards regulating the use of stablecoins and ensuring their stability and legality in the financial market.