Crypto advocacy group says stablecoin bill ‘violates free speech rights’

Coin Center, a US-based cryptocurrency advocacy organization, recently expressed concern over a bill passed in the Senate to establish a regulatory framework and payment stability.

In an April 19 announcement, the Coin Center called the Lummis-Gillibrand Payment Stablecoin Act — introduced by Senators Kirsten Gillibrand and Cynthia Lummis — “bad policy” and unconstitutional for its proposed ban on algorithmic stablecoins. The group argued that a code ban that fundamentally targets such stablecoins would appear unconstitutional under First Amendment protections.

“[I]Requiring issuers like Terra to register with the SEC and provide appropriate disclosures may make sense (which cannot be used as a stablecoin for all practical purposes), but an outright ban on a specific business model is unnecessary and anti-innovative,” the Coin Center said. “If one can comply with safety regulations, one should be able to bring a product to market.”

Jerry Brito, executive director of the Coin Center, said that trying to create a regulatory framework for stablecoins in the US is an “admirable effort”. Under the proposed bill, only US-approved issuers would be allowed to issue dollar-backed stablecoins.

Lawmakers in the US House of Representatives and Senate are working on legal solutions for stablecoins. The Coin Center has proposed a two-year moratorium on the transparency of the Stablecoins Act – a bill that is up for a full floor vote in the House – citing an “irrational” approach to algorithmic stablecoins.

RELATED: Elizabeth Warren backs US sanctions options for stable coin

The withdrawal of TerraUSD (UST) from the US dollar in 2018. It is one of the events that contributed to the decline of the crypto market in 2022. Many firms have filed for bankruptcy, and U.S. authorities and regulators continue to pursue criminal and civil charges against individuals involved in illegal activities. .

Senator Sherrod Brown, chairman of the Senate Banking Committee, said on April 16 that if his concerns are resolved, one of his goals in the legislative session will be a stable coin bill. At the time of publication, there were no plans in the House for a floor vote on the Payment Stablecoins Act.

Journal: Unstable Coins: Debasement, Bankruptcy and Other Risks Looming.