Brazil lawmakers move to outlaw algorithmic stablecoins like USDe, Frax

cryptonews

Feb 05

Brazil advances a bill to ban algorithmic stablecoins and force all domestic issuers to fully collateralize tokens, tightening rules in a market where stablecoins drive 90% of crypto flows. Summary ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBrazil lawmakers move to outlaw algorithmic stablecoins like USDe, Frax\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-05 22:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://crypto.news/brazil-lawmakers-move-to-outlaw-algorithmic-stablecoins-like-usde-frax/><strong>cryptonews</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Brazil advances a bill to ban algorithmic stablecoins and force all domestic issuers to fully collateralize tokens, tightening rules in a market where stablecoins drive 90% of crypto flows.\n\n\nSummary\n...</p>\n\n<a href=\"https://crypto.news/brazil-lawmakers-move-to-outlaw-algorithmic-stablecoins-like-usde-frax/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1861220207.SGD","symbol_name":"Blackrock FinTech A2 SGD-H","start_time":0,"source_url":"https://crypto.news/brazil-lawmakers-move-to-outlaw-algorithmic-stablecoins-like-usde-frax/","article_id":"2609306010","we_media_id":null,"thumbnails":[],"rights":{"source":"crypto_news_highlight","url":"https://crypto.news/brazil-lawmakers-move-to-outlaw-algorithmic-stablecoins-like-usde-frax/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2609306010","pubTimestamp":1770300868,"columns":[],"sourceInfo":{"source_id":"crypto_news_highlight","name":"Crypto News"},"weMediaInfo":null,"summary":"Brazil advances a bill to ban algorithmic stablecoins and force all domestic issuers to fully collateralize tokens, tightening rules in a market where stablecoins drive 90% of crypto flows.Bill 4.308/2024 would prohibit issuance or trading of uncollateralized, code-based stablecoins and introduce prison terms of up to eight years for minting unbacked tokens.Foreign issuers like USDT and USDC would need Brazilian authorization, while local exchanges must verify comparable compliance standards or assume direct risk responsibility.The proposal, still subject to further committee and Senate approvals, could force algorithmic projects to redesign or exit a market processing $6b–$8b in monthly crypto volume.Brazil’s Congress has fired a clear warning shot at uncollateralized stablecoins, advancing a bill that would effectively outlaw algorithmic designs such as Ethena’s USDe and Frax in one of crypto’s busiest markets.The proposal still needs signoff from the Finance and Taxation and Constit","collect":0,"end_time":0,"defaultTopTitle":"crypto.news","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1861220207.SGD":"Blackrock FinTech A2 SGD-H","CRCA":"Proshares Ultra CRCL","BK7083":"煤与消费用燃料","CRCD":"T-REX 2X Inverse CRCLDaily Target ETF","BTC.AU":"Btc Health Ltd","CRCG":"2倍做多CRCL ETF-Leverage Shares","CRCO":"YIELDMAX CRCL OPTION INCOME STRATEGY ETF","LU2360107671.USD":"BGF FINTECH \"A4\" (USD) INC","BK4601":"加密货币现货ETF","LU0106831901.USD":"贝莱德世界金融基金A2","ETH":"低成本以太坊ETF-Grayscale","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","SOL.AU":"WASHINGTON H. SOUL PATTINSON","BK7105":"多领域控股","BK4023":"应用软件","BTC":"Grayscale Bitcoin Mini Trust","CCUP":"T-REX 2x Long CRCL Daily Target ETF","LU1791807156.HKD":"BGF WORLD FINANCIALS \"A2\" (HKDHDG) ACC","LU1861217088.USD":"贝莱德金融科技A2"},"translate_title":"巴西立法者采取行动取缔USDe、Frax等算法稳定币","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BTC.AU":1,"CRCO":0.6,"SOL.AU":1,"BTC":1,"CRCD":0.6,"CCUP":0.6,"ETH":1,"CRCA":0.6,"CRCG":0.6},"content_text":"Brazil advances a bill to ban algorithmic stablecoins and force all domestic issuers to fully collateralize tokens, tightening rules in a market where stablecoins drive 90% of crypto flows.\n\n\nSummary\n\n\n\nBill 4.308/2024 would prohibit issuance or trading of uncollateralized, code-based stablecoins and introduce prison terms of up to eight years for minting unbacked tokens.\nForeign issuers like USDT and USDC would need Brazilian authorization, while local exchanges must verify comparable compliance standards or assume direct risk responsibility.\nThe proposal, still subject to further committee and Senate approvals, could force algorithmic projects to redesign or exit a market processing $6b–$8b in monthly crypto volume.\n\n\n\nBrazil’s Congress has fired a clear warning shot at uncollateralized stablecoins, advancing a bill that would effectively outlaw algorithmic designs such as Ethena’s USDe and Frax in one of crypto’s busiest markets.\nBrazil inches closer towards stablecoin outlawing \nBill 4.308/2024, approved this week by the Science, Technology, and Innovation Committee, “prohibits the issuance or trading of stablecoins … which aim to maintain their value through code rather than collateral,” tightening the definition of what can legally pass as a fiat‑pegged asset in Brazil. Under the proposal, all stablecoins issued domestically must be “fully backed by segregated reserve assets,” with lawmakers creating a new criminal offense for minting unbacked tokens that carries penalties of up to eight years in prison and reframes such issuance as financial fraud.\nThe move comes after global scrutiny of unbacked models following Terra’s 2022 collapse and amid explosive local demand for dollar‑linked tokens. Data from Brazil’s tax authority show that stablecoins already drive roughly 90% of the country’s reported crypto transaction volumes, cementing their role as the main on‑ramp for digital assets and cross‑border flows. That dominance has made Brazil a test case for regulators worldwide: earlier analysis from Chainalysis and local officials similarly highlighted that “over 90% of Brazilian crypto flows are now stablecoin‑related,” underscoring the systemic stakes.\nForeign issuers are firmly in the crosshairs. Under the bill, offshore stablecoins such as Tether’s USDT and Circle’s USDC could only be offered by entities authorized to operate in Brazil, while local exchanges would be required to verify that issuers comply with standards “similar to Brazil’s,” or else assume direct responsibility for risk management. That aligns with a broader policy push to tax and formalize crypto flows, including plans to subject stablecoin transactions to Brazil’s IOF financial operations tax and stricter reporting regimes.\nThe proposal still needs sign‑off from the Finance and Taxation and Constitution, Justice, and Citizenship committees before heading to the Senate, but the direction of travel is clear: Brazil is moving toward a fully collateralized, tightly supervised stablecoin stack. If passed, the law would force algorithmic projects to either abandon their core design or exit a market that processes between $6 billion and $8 billion in crypto volume every month, much of it now intermediated through stablecoins.\nThis regulatory pivot lands against a volatile market backdrop. Bitcoin (BTC) trades near $71,392, with a 24‑hour range between roughly $70,120 and $76,181 on about $94.1B in volume. Ethereum (ETH) changes hands around $2,114, after swinging between $2,080 and $2,294 over the past day on roughly $46.3B in turnover. Solana (SOL) sits close to $91.48, having traded between about $90.56 and $100.52 on more than $7.5B of volume as traders reassess risk across the complex.\nBrazil’s tax authority and central bank have repeatedly flagged the dominance of stablecoins in local flows, with recent analyses and consultations detailing how new rules could reshape cross‑border payments, self‑custody, and foreign‑issued tokens.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}