Brazil Advances Bill to Ban Unbacked Stablecoins
Lawmakers in Brasília moved Bill 4.308/2024 forward on Thursday, a proposal that would bar unbacked stablecoins and force all stablecoin issuers—domestic and foreign—to hold full reserves and comply with Brazilian regulatory requirements. The text emphasizes custody, transparency and auditability of reserves, and would subject cross‑border stablecoin providers to local oversight if the bill becomes law.
If enacted, the measure could materially affect liquidity and on‑ramp options for Brazilian traders, remittance services and DeFi users who rely on dollar‑pegged tokens. Exchanges and issuers will likely face higher compliance and custody costs, while some activity may migrate to peer‑to‑peer channels or offshore services. Market participants and international issuers will be watching next steps and any transition timelines closely, as the bill could reshape how stablecoins operate in Brazil’s crypto ecosystem.