Lummis-Gillibrand Bill Bans Algorithmic Stablecoins: Law Decoded
US Senators Kirsten Gillibrand and Cynthia Lammis have introduced legislation to regulate payments for stable science.
The law aims to ban “unbacked, algorithmically stable coins” – possibly coined by TerraUSD (UST) from the US dollar in 2022 – and requires issuers to maintain a one-to-one reserve.
It also “creates federal and state regulatory systems of statecoin issuers that protect the banking system.
The 179-page legal document states that state non-depository trust companies will be allowed to issue up to $10 billion in fee-stable coins, while authorized institutions are allowed to issue “up to any amount” under a state charter for specific purposes. .
The Act aims to enforce the existing system of state and federal charters and provides protection rules for non-depository trust companies.
Advocacy group Coin Center has expressed concerns about the bill, saying it would be “bad policy” and that the proposed ban on algorithmic stablecoins is unconstitutional.
The group argued that the algorithm's ban on stablecoins targeted code would be unconstitutional under First Amendment protections.
The Coin Center for Transparency of Payments Stablecoins Act – a bill set for a full floor vote in the US House of Representatives – has an “irrational” approach to algorithmic stablecoins by proposing a two-year ban rather than an outright ban.
Canada Moves to Global Crypto Tax Reporting Standard
Canada will implement the global Crypto-Asset Reporting Framework (CARF) for taxation in 2026. The country is starting early on the new level, which is expected to be celebrated by 47 countries by 2027.
CARF imposes new reporting requirements on crypto asset service providers (CASPs), such as currency exchanges, crypto asset brokers and dealers, and crypto-asset automated machine operators, whether individuals or business entities.
CASPs are required to report to the Canada Revenue Agency for transactions between crypto assets and fiat and crypto assets for other crypto assets. Crypto asset transfers performed by CASPs, including payment processing with a value greater than $50,000, must also be reported.
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Arkansas wants to limit crypto mining
An Arkansas Senate committee has passed two bills that could restrict cryptocurrency mining in the state. The bills lay the groundwork for further discussion.
In a Senate hearing on April 17, lawmakers tried to address general concerns such as noise abatement, foreign ownership and proximity of crypto mines to residential areas.
The committee will continue to discuss the issue and hear additional public comments. The debate over whether to regulate crypto mines at the state level and how many mines should be regulated stems from the Arkansas Data Centers Act, which limits local government's ability to regulate crypto mines.
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Binance returns to India, gets Dubai license
Binance crypto exchange is set to return to India after being banned for four months and paying a fine of $2 million.
It will be the second overseas exchange after KuCoin to mark its return to the country after India's financial regulatory body banned crypto exchanges for non-compliance.
Binance reportedly accounted for more than 90% of India's crypto trading volume before it was banned in January.
Co-founder Changpeng Zhao, whose company is licensed as a Dubai virtual asset service provider (VASP), has relinquished his voting power in the exchange's local body.
The final requirement for the virtual assets regulator to grant VASP a license was for Zhao to give up voting power in Binance FZE, a division of the Dubai-based exchange, the people familiar with the matter said on condition of anonymity.
While Binance's current chief executive Richard Teng confirmed the approval, Zhao relinquishing his voting power was “pure speculation”.
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