Pro-Bitcoin Senator Cynthia Lummis pushed the stablecoin bill

Pro-Bitcoin (BTC) US Senator Cynthia Lammis is developing regulations for a stablecoin tied to real-world assets to ensure a stable price.

Loomis has been working with Senator Kirsten Gillibrand for several months on a bill aimed at providing regulatory transparency to stablecoins and protecting investors, US news agency Axios reported on March 7.

Citing spokespeople for Loomis and Gillibrand's offices, the report said the senators are hoping to make the news public following encouraging feedback from several stakeholders.

The New York Department of Financial Services, the Federal Reserve, the Treasury Department and the National Economic Council provided technical support on the Senate bill, the report said.

For Lummis and Gillibrand, their work on stablecoin regulation will not be their first foray into cryptocurrency-related legislation. In the year In July 2013, senators announced a joint effort to reintroduce legislation aimed at establishing a comprehensive regulatory framework for digital assets.

Lummis has emerged as a major pro-Bitcoin lawmaker in the US, often advocating for Bitcoin.

In the year In October 2021, Lummis urged the US government to “thank God for Bitcoin” when US President Joe Biden approved another increase in the nation's debt limit. Lummis called for the US government to take advantage of Bitcoin as it is decentralized and not controlled by any government.

Lummis is known for accumulating large amounts of Bitcoin by buying BTC at $50,000 and $100,000 in 2021.

While bullish on Bitcoin, Lummis has recently grown skeptical about some major stablecoins including Tether (USDT), the largest stablecoin by market capitalization and the most traded cryptocurrency at the time of writing.

Related: UK rules allow stablecoins and CBCCs to co-exist, says former BoE fintech chief

In the year In October 2023, Lummis supported a massive campaign against Tether, with the United States Department of Justice (DOJ) seeking criminal charges against the stablecoin firm amid reports that some had engaged in illegal financial transactions. Tether responded to lawmakers' questions about the DOJ's action by saying it wants to be a “world-class partner” to U.S. regulators.

More recently, Lummis has also strongly opposed central bank digital currencies, arguing that such digital currencies are “anti-democratic and a form of financial censorship.”

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