The U.S. Congress will consider a new bill on the regulation of cryptocurrencies, which could introduce a ban on the creation and issue of algorithmic stablecoins for two years, Bloomberg reported. According to the document, the ban will apply to cryptocurrencies, which are linked to the prices of fiat currencies by another digital asset of the same issuer.

An example of such cryptocurrency is the stablecoin of the failed Terra project, UST. The collapse of this coin, backed by the Luna token, began on May 8: UST lost its peg to the U.S. dollar after a one-time sale of tokens worth about $300 million. The collapse of this stablecoin led to billions of dollars in losses.

The bill would also allow banks and non-banks to issue their own stablecoins and prohibit companies from bundling customer funds with company assets to protect consumers in the event of bankruptcy. The bill is currently in the drafting stage. A vote on the bill could come as early as next week, the publication reports, citing unnamed sources.


The U.S. Congress continues to work hard to regulate the cryptocurrency sector and tighten oversight in this area. Earlier, the House of Representatives approved a bill that provides a number of measures aimed at curbing the use of cryptocurrencies to circumvent anti-Russian sanctions.

https://altcoin.ng/the-us-plans-to-ban-algorithmic-stablecoins-for-2-years/