The Lummis-Gillibrand Payment Stablecoin Act (S. 4155) aims to regulate payment stablecoins in the United States. It sets out requirements for stablecoin issuers, including maintaining reserves of 100% of the stablecoin's nominal value for depository institutions. The Act...
Simple Explanation
The Lummis-Gillibrand Payment Stablecoin Act is a law that wants to make sure "stablecoins" (a kind of digital money) are safe for people to use by asking companies to keep enough real money in reserve. It's like making sure a lemonade stand always has enough lemons to refill every lemonade cup they sell.