US senators propose bill to ban the use of unsupported algorithmic stablecoins

U.S. Senators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-Wyoming) introduced a stablecoin bill on Wednesday.
The bill would require stablecoin issuers to hold a one-to-one reserve of cash or cash equivalents to back their tokens. According to an official press release shared with The Block, it bans unbacked algorithmic stablecoins and claims neither issuers nor users can use stablecoins for illegal or unauthorized purposes such as money laundering.
"Adopting a regulatory framework for stablecoins is absolutely critical to maintaining America's position as the dominant dollar, promoting responsible innovation, protecting consumers and combating money laundering and illicit finance," the statement said.