U.S. Senator Submits Amendment to Stablecoin Bill, Proposing Explicit Ban on Cryptocurrencies as Legal Tender

Cryptocurrency journalist Eleanor Terrett revealed that U.S. Senator Jack Reed submitted an amendment ahead of Thursday’s stablecoin bill markup, proposing to explicitly prohibit cryptocurrencies from being used as legal tender—including banning the payment of taxes in crypto assets. Senator Elizabeth Warren also submitted over 40 amendments, one of which aims to prevent the Federal Reserve from granting master accounts to cryptocurrency firms. Another amendment, jointly submitted by Senators Reed and Smith, seeks to codify banks’ restrictions on stablecoin yield offerings into the bill.