stablecoins<\/a> issued domestically must be \u201cfully backed by segregated reserve assets,\u201d 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.<\/p>\nThe move comes after global scrutiny of unbacked models following Terra\u2019s 2022 collapse and amid explosive local demand for dollar\u2011linked tokens. Data from Brazil\u2019s tax authority show that stablecoins already drive roughly 90% of the country\u2019s reported crypto transaction volumes, cementing their role as the main on\u2011ramp for digital assets and cross\u2011border flows. That dominance has made Brazil a test case for regulators worldwide: earlier analysis from Chainalysis and local officials similarly highlighted that \u201cover 90% of Brazilian crypto flows are now stablecoin\u2011related,\u201d underscoring the systemic stakes.<\/p>\n
Foreign issuers are firmly in the crosshairs. Under the bill, offshore stablecoins such as Tether\u2019s USDT and Circle\u2019s 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 \u201csimilar to Brazil\u2019s,\u201d 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\u2019s IOF financial operations tax and stricter reporting regimes.<\/p>\n
The proposal still needs sign\u2011off 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.<\/p>\n
This regulatory pivot lands against a volatile market backdrop. Bitcoin (BTC) trades near $71,392, with a 24\u2011hour 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.<\/p>\n
Brazil\u2019s 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\u2011border payments, self\u2011custody, and foreign\u2011issued tokens.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
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