Overview
- The Science, Technology, and Innovation Committee approved the report on Bill 4.308/2024 to redefine and restrict fiat‑pegged tokens.
- The proposal would criminalize issuing unbacked stablecoins, with penalties of up to eight years in prison.
- All domestically issued tokens would require segregated reserve assets alongside stricter transparency and disclosure rules.
- Offshore stablecoins such as USDT and USDC could be offered only by authorized firms, with local exchanges assuming liability if comparable compliance is not verified.
- Stablecoins make up roughly 90% of Brazil’s reported crypto volumes, and passage could force algorithmic projects to redesign or exit a market estimated at $6–$8 billion in monthly activity.