Brazil's Congressional Technology Committee has approved Bill 4308/2024, which aims to ban algorithmic stablecoins and prohibits the issuance and trading of stablecoins without full reserve backing. This includes Ethena's USDe and Frax. The new regulations require stablecoins issued in Brazil to be 100% backed by segregated reserve assets and demand increased transparency. Issuing unsupported stablecoins will be classified as a criminal offense, punishable by up to 8 years in prison. For foreign stablecoins like USDT and USDC, only approved institutions are allowed to offer them. Exchanges must verify that issuers comply with Brazilian standards, or they will bear the risk themselves. Currently, stablecoins account for approximately 90% of Brazil's crypto trading volume.