Brazil passes bill to push for banning algorithmic stablecoins, punishable by up to 8 years in prison

Comparatively, the Brazilian Congress's Science and Technology Committee passed a bill to push for the ban on algorithmic stablecoins and clearly prohibit 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 increase transparency; illegal issuance of unsecured stablecoins will be characterized as a criminal offense, punishable by up to 8 years in prison. For overseas stablecoins (such as USDT and USDC), only approved institutions are allowed to provide them. Transactions are required to check whether the issuer meets domestic standards; otherwise, they must bear their own risk; stablecoins currently account for about 90% of Brazil's crypto trading volume. (CoinDesk)