US Senator: Stablecoins Should Be Backed By Cash Reserves!

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Lummis, a pro-crypto senator, on the topic of stablecoins SEC He shares similar concerns with Gary Gensler, the Chairman of the (United States Securities and Exchange Commission). The senator thinks that stablecoins should be supplemented with cash.

The Senator Expressed Concern That

The senator expressed his ideas in a speech on Wednesday. Senator Lummis said in his speech, CBDChe touched on the (Central Bank Digital Currency) and stablecoins. Stablecoins provide faster payments and increase financial participation and encourage new opportunities, Lummis said, adding that they also have some risks for the economy:

Stablecoins should be backed with 100% cash and audited regularly. I am worried that some companies are not transparently providing this cash support.

Lummis also said that these stable cryptocurrencies should comply with “anti-money laundering” laws. As a solution, he suggested that cryptocurrencies may need to be issued only by depository institutions, money market funds and similar means.

Stablecoins Are a Priority Issue For Regulators

Stable cryptocurrencies stand out as a primary concern for United States regulators. This stablecoinalthough ler does not provide a profit to its investors, it allows them to maintain a certain value. Precisely for this reason, according to the Senator, the reserves of these companies need to be thoroughly and regularly inspected.

At the moment, regulators are turning their eyes to the leading stablecoin Tether (USDT) he has translated it. Although he claims that he has enough cash on hand as a reserve Tether, has not yet been able to provide concrete data to instill confidence in the community.

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