Coin Center, a digital currency advocacy group, has raised concerns over the Lummis-Gillibrand Payment Stablecoin Act, stating that it could infringe on constitutional rights. The group argues that the bill's prohibition on algorithmic stablecoins would be a violation of the First Amendment, targeting the code behind digital assets.

Jerry Brito, the Director of Coin Center, welcomed the idea of regulating stablecoins but emphasized the importance of innovation within a clear legislative framework. The bill, which requires dollar stablecoin issuance by U.S.-approved issuers, is seen by Coin Center as an opportunity for registration rather than a ban.

Coin Center Criticizes Senate's Stablecoin Regulation Method

The Senate's approach to stablecoin regulation has been met with criticism from Coin Center, which argues that the bill's prohibition on algorithmic stablecoins is too restrictive. The group has proposed a two-year moratorium on algorithmic stablecoins instead, allowing for more progress and flexibility. This approach contrasts with the Senate's more restrictive proposals, highlighting ongoing discussions around crypto oversight.

Coin Center Advocates for Flexible Registration of Crypto

Coin Center has proposed a flexible registration system for crypto, aiming to balance innovation with compliance. The group argues that the pre-existing securities regulatory framework is sufficient to address the risks associated with stablecoins. By incorporating new products under existing regulations, innovation can thrive while maintaining consumer protection and market integrity.

Uncertainty Surrounds House Stablecoin Act Vote

The House's Clarity for Payment Stablecoins Act has yet to be scheduled for a floor vote, adding to the complexity of establishing a coherent regulatory environment for stablecoins in the U.S. Senator Sherrod Brown, Chair of the Senate Banking Committee, has expressed interest in advancing a stablecoin bill, but addressing concerns is crucial for moving forward. Coin Center's proposed flexible registration system could be a viable solution, ensuring development while maintaining compliance with rules.