Senator Cynthia Lummis: stablecoins must be 100% backed by cash - Bloomberg

U.S. Senator Cynthia Lummis, a cryptocurrency advocate, says stablecoins should be fully backed in cash and cash equivalents, in addition to being audited regularly, Bloomberg reports, citing a speech she gave on the Senate floor. "It may be the case that stablecoins should only be issued by depository institutions or through money-market funds or similar vehicles," she said. Recall that Senator Lummis attempted to amend the definition of a crypto broker in a pending $1T infrastructure bill back in August, but it failed to pass in the Senate. Stablecoins, which are pegged at a one-to-one ratio to the dollar, such as Tether (USDT-USD), are often used by investors to purchase other cryptos like bitcoin (BTC-USD). But these tokens are largely unregulated as "we've got a lot of casinos here in the Wild West, and the poker chip is these stablecoins at the casino gaming tables," Securities and Exchange Commission Chair