Brazil's Congressional Technology Committee Passes Bill to Advance Ban on Algorithmic Stablecoins

Odaily News: Brazil's Congressional Technology Committee has passed a bill to advance the ban on algorithmic stablecoins, explicitly prohibiting the issuance and trading of stablecoins without sufficient reserves, including Ethena's USDe and Frax. The new regulations require that stablecoins issued in Brazil must be 100% backed by segregated reserve assets and enhance transparency; issuing unbacked stablecoins in violation will be classified as a criminal offense, with a maximum penalty of 8 years imprisonment. For foreign stablecoins (such as USDT, USDC), only approved institutions are allowed to provide them, and exchanges must verify whether the issuer complies with national standards; otherwise, they must bear the risks themselves. Stablecoins currently account for approximately 90% of Brazil's cryptocurrency trading volume. (CoinDesk)