Cryptocurrency advocacy groups claim that stablecoin legislation would ‘violate freedom of expression.’

Coin Center argued that banning algorithmic stablecoins in the U.S. would be a constitutional issue because it essentially targets the code.

Coin Center, a U.S.-based cryptocurrency advocacy group, has expressed concerns about a bill recently introduced in the Senate to establish a regulatory framework and shield for payment stablecoins.

In an April 19 notice, Coin Center argued that the Lummis-Gillibrand Payments Stablecoin Act, introduced by Senators Kirsten Gillibrand and Cynthia Lummis, is “bad policy” and would be unconstitutional due to its proposed ban on algorithmic stablecoins. I did. The group argued that banning these stablecoins essentially targets the code and appears to be an unconstitutional practice protected by the First Amendment.

“(I)t may not make sense to require issuers of products like Terra to register with the SEC and make appropriate disclosures (making it impossible for them to be used as stablecoins for all practical purposes). However, outright banning of certain business models is unnecessary and counter-innovative,” Coin Center said. “If you can comply with securities laws, you should be able to get your product to market.”

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Source: https://cointelegraph.com/news/crypto-advocates-stablecoin-bill-concerns