On April 17, 2024, the Lummis-Gillibrand Payment Stablecoin Act was introduced by Senators Kirsten Gillibrand and Cynthia Lummis to regulate U.S. stablecoins.

The 117-page bill mandates that stablecoin issuers must operate through subsidiaries and keep one-to-one reserves, while banning the issuance of algorithmic stablecoins.

Regulatory authority varies with the value of stablecoins issued, imposing a $10 billion limit on the oversight of state regulators.

The legislation seeks to instill transparency and establish a detailed regulatory framework for the cryptocurrency market in the United States.

Senate Majority Leader Chuck Schumer is considering merging this stablecoin regulation with cannabis sales legislation.

The bill is gaining traction and may be integrated into a larger bill reauthorizing the Federal Aviation Administration, pending full Senate approval.