Senator Cynthia Lummis from the state of Wyoming, one of the least populated states in the USA, has become one of the most staunch supporters of the crypto industry after hearing the word Bitcoin for the first time in 2013 from her daughter and son-in-law.
In his recent Senate speech, Republican Lummis targeted Stablecoins, stating that Stablecoins should be backed by cash and cash equivalents and that this should be audited regularly.
The Republican senator said that stablecoins could only be issued by depository institutions or money market funds.
Circle and Tether, the two largest stablecoin issuers in the market, announced that their products are backed by cash, cash equivalents, short-term securities or commercial papers.
Despite the fact that stablecoins such as Tether are often used to purchase other cryptocurrencies, the lack of regulation about these stablecoins is still met with concern by crypto supporters, and these concerns are expressed at every opportunity.
In the face of these concerns, US Treasury officials are preparing a report on stablecoins, and this report is expected to be made public next week.
It is also among the information received that they are discussing starting an official review by the Financial Stability Oversight Council on whether stablecoins pose an economic threat.