Free Speech and Finance: Coin Center Challenges Senators’ Stablecoin Proposal

In a significant pushback against proposed legislation in the cryptocurrency sphere, Coin Center, a leading crypto advocacy group, has raised objections to a stablecoin bill put forward by Senators Kirsten Gillibrand of New York and Cynthia Lummis of Wyoming. The bill, targeting the regulation of stablecoins, has sparked a debate over the balance between financial regulation and free speech.

The crux of Coin Center’s opposition lies in the bill’s approach to algorithmic payment stablecoins, such as Terras UST. According to Coin Center, the proposed legislation’s move to outright ban these types of stablecoins infringes upon free speech rights. The advocacy group contends that algorithmic stablecoins, by virtue of being decentralized and based on computer code, should not be banned but rather subject to regulatory oversight. Coin Center proposes that these stablecoins could instead be regulated through registration with the U.S. Securities and Exchange Commission (SEC), offering a pathway to compliance while respecting the principles of free expression.

Coin Center’s stance echoes a broader concern within the crypto community and beyond: the tension between government regulation and the First Amendment. By framing the ban on decentralized algorithmic stablecoins as a form of censorship against computer code, Coin Center highlights the complex intersections of technology, finance, and rights that are at play in the evolving landscape of cryptocurrency regulation.