TechFlow reports, according to Bitcoin, that a new bill aimed at regulating stablecoins—co-sponsored by U.S. Senators Cynthia Lummis and Kirsten Gillibrand—has drawn criticism for potentially stifling innovation and infringing on First Amendment rights. The bill includes a provision banning all "algorithmic payment stablecoins," which could significantly impact software developers and the broader technology community.
Jerry Brito, founder of Coin Center—an advocacy group for cryptocurrency policy—said the bill seeks to establish a regulatory framework but introduces provisions that are both unnecessary and possibly unconstitutional. Brito argued that any product complying with existing securities laws should be allowed to launch in the market without additional barriers.
Coin Center hopes that Lummis and Gillibrand will reconsider their current stance and adopt a more practical approach that protects innovation while ensuring compliance with securities regulations.
