US Senators propose stablecoin regulations, but foreign-issued tokens remain unaddressed.

Senators Cynthia Lummis and Kirsten Gillibrand have proposed a bill that seeks to regulate stablecoins issued by US companies. The bill includes a framework for state and federal oversight of stablecoin issuers, a process for possible collapses, and a ban on algorithmic stablecoins. However, the bill does not address foreign company-issued tokens, like Tether, and lacks a specific mechanism to prevent them from accessing US customers. Lawmakers may only be able to pass stablecoin legislation during the lame-duck session, and any bill would likely be attached to a must-pass piece of legislation. Meanwhile, the US Securities and Exchange Commission has won a civil case against Do Kwon and Terraform Labs and is seeking $4.7 billion in disgorgement and $520 million in civil penalties.