Cryptocurrencies
Pro-Crypto Senator Warns Stablecoins Need to Be Backed by Cash
- Sen. Lummis suggests coins may need to be issued by banks
- Call for more rules is latest sign of crypto crackdown in D.C.
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Stablecoins should be backed by cash and may need to be issued by banks, according to U.S. Senator Cynthia Lummis, who has become one of Capitol Hill’s most ardent supporters of cryptocurrencies.
“It may be the case that stablecoins should only be issued by depository institutions or through money-market funds or similar vehicles,” said Lummis, a Republican from Wyoming, in a speech Wednesday on the Senate floor. “Stablecoins must be 100% backed by cash and cash equivalents, and this should be audited regularly.”