US Senators Propose Stablecoin Act; Telegram Founder Foresees Crypto-Inspired Devices & Bitcoin Stock Plummet
Summary:
United States senators, Kirsten Gillibrand and Cynthia Lummis, have proposed a bill for the regulation of stablecoins, named the Lummis-Gillibrand Payment Stablecoin Act. Telegram founder, Pavel Durov, expects the advent of secure communication devices influenced by cryptocurrency wallets as a response to increasing government surveillance. Meanwhile, Bitcoin miner stocks have witnessed a sharp fall due to investor concerns about their post-halving profitability.
A bill to regulate stablecoins has been presented by a pair of U.S. senators following months of effort. Telegram's founder envisions the creation of crypto hardware wallet-inspired secure communication devices in response to the growing trend of government surveillance. In other news, stocks in Bitcoin mining have dropped from their peak in 2024 as investors worry about the implications of post-halving gains.
Senators Kirsten Gillibrand, a Democrat, and Cynthia Lummis, a Republican, have collaborated to launch innovative legislation relating to stablecoin in the United States - the Payment Stablecoin Act by Lummis-Gillibrand. Drafted over a lengthy period, the Act aims to simplify the regulatory landscape for payment stablecoins and crucially, proposes a prohibition of "unbacked, algorithmic stablecoins", potentially alluding to the ill-fated TerraUSD (UST) stablecoin. “It is of utmost importance to establish a regulatory framework for stablecoins to safeguard the U.S. dollar's dominance, spearhead responsible innovation, shield consumers and combat money laundering and illicit finance,” Senator Gillibrand stated. Gillibrand and Lummis have collaborated on crypto-focused regulation before, seeking to define roles of the Securities and Exchange Commission and Commodity Futures Trading Commission in cryptocurrency regulation.
Pavel Durov, founder of the encrypted instant messaging app, Telegram Messenger, anticipates that the uptick in government surveillance will usher in the creation of secure communication devices, inspired by cryptocurrency hardware wallets. In an interview with Tucker Carlson on April 17th, Durov shared his concern over shrinking privacy due to increasing governmental control, but also sounded optimistic about the onset of hardware innovations for secure communications, akin to cryptocurrency storage solutions.
On the other hand, investor apprehensions about post-halving profitability have led to Bitcoin (BTC) mining shares plummeting from their year-to-date highs. Yet, Mitchell Askew, the Chief Analyst at Bitcoin mining firm Blockware Solutions, dismisses such concerns as largely unfounded and believes that the mining stocks' tumble is primarily caused by the falling Bitcoin prices and worries over profitability post the April 20 halving. Notably, the stocks of Bitcoin miners such as Marathon Digital, Riot Platforms, CleanSpark, Bitdeer Technologies and Iris Energy have all experienced significant drops from their highs earlier in the year.
This news report does not contain investment advice or recommendations. As investing and trading involve risks, readers are advised to conduct independent research and make informed decisions. Geraint Price, Sam Bourgi and Felix Ng have contributed to this report.
Published At
4/18/2024 12:17:59 AM
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