The U.S. House Financial Services Committee has moved forward with a stablecoin bill aimed at establishing clearer regulations for the industry. Called the Stablecoin Transparency and Accountability for a Better Ledger Economy Act, or the STABLE Act, the legislation was approved by the committee with 32 votes in favor and 17 against. This bill, introduced by Committee Chair Rep. French Hill (R-Ark.) and Rep. Bryan Steil (R-Wis.), aims to create a comprehensive framework for the issuance and oversight of dollar-pegged stablecoins.
The bill sets strict standards for reserve backing and anti-money laundering measures, including one-to-one reserve backing and capital requirements. During the hearing, Hill emphasized the importance of regulation in maintaining the United States’ competitive edge in financial technology, noting that “blockchain technology continues to transform the way money moves.”
This is not the committee’s first attempt to legislate stablecoins. A similar initiative in 2023 stalled due to partisan disagreements and criticisms of the Biden administration’s involvement. However, the current version of the STABLE Act is part of a renewed effort to bring clarity to the fast-evolving stablecoin sector. The hearing included debates on handling foreign stablecoin issuers like Tether and the potential impact of former President Donald Trump’s increasing involvement in cryptocurrency.
Ranking Democrat Rep. Maxine Waters (D-Calif.) opposed the bill, expressing concerns that it could empower political figures with personal interests in the crypto industry. She remarked, “This bill sets a dangerous precedent.”
Differences also remain between the House and Senate versions of stablecoin legislation. While the STABLE Act allows foreign stablecoin issuers a transitional two-year grace period before complying with U.S. rules, the Senate’s GENIUS Act takes a stricter approach by barring new foreign issuers from entering the U.S. market. Industry leaders have also weighed in, with Circle’s chief strategy officer, Dante Disparte, encouraging lawmakers to pass the STABLE Act to solidify the U.S. position in the global digital economy.
The House Financial Services Committee plans to consider a broader market structure bill next week, which may align with the stablecoin measure. Rep. Steil compared the two initiatives to “peanut butter and jelly,” suggesting that both are necessary for a complete regulatory framework.
Ahead of tomorrow’s @FinancialCmte markup of the STABLE Act, we must first commend Chairman @RepFrenchHill and @RepBryanSteil on how the bill achieves a clear America first standard when it comes to the issuance and circulation of dollar-denominated payment stablecoins. Clear… — Dante Disparte (@ddisparte) April 1, 2025
