Sens. Cynthia Lummis and Kirsten Gillibrand of the United States have proposed stablecoin legislation, which would be easier for the American corporation Circle to implement than for Tether.

According to Lummis, US consumers will favour stablecoin issuers subject to US regulation.

One of the current bill's writers, Sen. Cynthia Lummis (R-Wyo.), claims that Circle Internet Financial would have a clear edge over the leading stablecoin in the world, Tether, under U.S. rules along the lines being recommended by new legislation.

In an interview with CoinDesk TV, Lummis said, "Let's say you're a U.S. consumer," and you're not an authority on the specifics of certain stablecoin issuers.

She contended that someone like that would probably support businesses governed by US laws.

Lummis declared, "If it were up to me, I would pick Circle over Tether." introduced the latest stablecoin legislative proposal this week with her usual crypto partner Sen. Kirsten Gillibrand (D-N.Y.).

Stablecoins are designed to be tokens with steady value – typically pegged to the U.S. dollar – and are vital for use in other crypto trading or contracts.

The Lummis-Gillibrand proposal is positioned as a work-in-progress bill meant to start conversations and to be modified for melding with whatever version emerges from the House, she said.

But as it stands, it echoes other previous legislative efforts in demanding a bank-like regulatory regime for stablecoin issuers.

"This is very much oriented towards a U.S.-regulated company, and so Tether, if it chooses to remain offshore … that's a business choice for them," Lummis said, and the company and token, (USDT), would presumably be picked up by other regulators and continue operating beyond the U.S. system.

"We're very focused on companies that are located and embedded in the U. S. economy."

Still, she said she'd expect existing stablecoin leaders such as Circle would have major regulatory hurdles to clear, such as getting licensed with a federal regulator.

(Circle, as it exists today, would not be allowed to issue its (USDC) under the proposed bill, which demands that businesses issuing more than $10 billion in tokens be regulated depository institutions – either on the state or federal level.)

Circle hasn't responded to requests seeking comment on the bill.

"We're glad we went ahead and put it out just to get some good feedback," Lummis said, describing it as a "very firm, solid regulatory framework" that's meant to satisfy lawmakers who are worried about the crypto disasters they've been witnessing since 2022.

"We're happy to adjust it according to changes the House might want to make, changes the White House might want to make, changes the industry might want to make."

Despite the fact that bitcoin legislation is still unlikely to pass this Congress given the political unrest, party differences, workload, and approaching elections, a number of well-known politicians have continued to express optimism.

Senate Majority Leader Charles Schumer (D-N.Y.) and Senate Banking Committee Chairman Sherrod Brown (D-Ohio) has allegedly stated they are open to discussing stablecoins, however alongside a number of his other banking concerns.

Schumer and the leaders of the House Financial Services Committee recently met to discuss advancing cryptocurrency legislation, though it's unclear how far those discussions have gone.

Lummis stated on Thursday that she is still awaiting the conclusions of the committee's leaders, Representatives Maxine Waters (D-Calif.) and Patrick McHenry (R-N.C.). Representatives for the two MPs did not respond to inquiries for comment about the lummis Gillibrand bill.