Amidst the frenzy of March, developers behind memecoins pulled off a rugpull scheme, disappearing with over $26 million from pre-sales on the Solana blockchain.

Coin Center, a prominent non-profit crypto advocacy group, has raised concerns over the constitutionality of a recently proposed stablecoin bill. Senators Cynthia Lummis and Kirsten Gillibrand introduced the bill aiming at regulating stablecoins, but it has drawn criticism for potentially stifling innovation and violating First Amendment rights.

According to Coin Center's recent blog statement, the proposed legislation imposes a blanket ban on algorithmic payment stablecoins, which they argue could impede technological progress and infringe on freedom of expression. The organization emphasized that such a ban constitutes prior restraint on protected speech and is unconstitutional unless the government can demonstrate a compelling interest and narrow tailoring.

The bill, developed in collaboration with the Federal Reserve and the New York State Department of Financial Services, requires stablecoin issuers to maintain reserves at a 1:1 ratio to back their tokens with cash or cash equivalents. Moreover, it prohibits unbacked algorithmic stablecoins, restricting U.S.-approved issuers to only dollar-backed stablecoins, effectively blocking algorithmic stablecoins from entering the market.