Crypto industry advocates are pushing back against a bill that could restrict stablecoin offerings in the U.S. 

The Lummis-Gillibrand Payment Stablecoin Act, introduced by Sens. Cynthia Lummis and Kirsten Gillibrand in the U.S. Senate on Wednesday, would require stablecoins to be backed by one-to-one cash or cash-equivalent reserves, effectively outlawing algorithmic stablecoins, in addition to charging federal and state authorities with stablecoin chartering and enforcement.

However, cryptocurrency-focused non-profit group Coin Center said Friday in a letter to lawmakers that the proposed framework is an “unreasonable,” and even “unconstitutional,”  measure that could curb innovation in the U.S. cryptocurrency industry.  

It “may make sense to require issuers of …