Brazil moves to ban algorithmic stablecoins like Ethena’s USDe

Brazil's new legislation aims to ban algorithmic stablecoins, mandating that all stablecoins must be fully backed by reserve assets. This move introduces penalties for issuing unbacked stablecoins, which could significantly impact the market for such assets. The implications suggest a tightening regulatory environment for stablecoins in Brazil, potentially leading to reduced innovation in this sector.