According to US Senator Cynthia Lummis, stablecoin reserves should be 100% backed by cash and cash equivalents, and banks or money market funds should become issuers, Bloomberg has reported.
She has also added that stablecoin issuers must also be audited regularly.
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Lummis is an advocate of digital assets. Thus, in 2020, she promised to bring the Bitcoin discussion to the national level. In August 2021, the senator became one of the authors of an amendment involving the exclusion of crypto sector participants from the infrastructure bill. The final vote will take place next September 30.
The document has been criticized in the crypto community because it includes an overly broad definition of "broker" that encompasses virtually all players in the sector. According to its regulations, miners and node operators, wallet developers, liquidity providers in DeFi protocols and other non-custodial players may be required to report their users' transactions to tax authorities.