The House Financial Services Committee has advanced a significant bill aimed at regulating stablecoins, known as the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE).
The bill received a vote of 32 in favor and 17 against during a lengthy hearing led by Chair French Hill, who emphasized the need for regulations to maintain global competitiveness in the evolving blockchain landscape.
The STABLE bill, introduced by Hill and Rep. Bryan Steil, establishes a framework for dollar-backed stablecoins. It includes requirements for reserves, capital, and anti-money laundering measures.
This is not the first attempt to regulate stablecoins; a similar bill passed in 2023 but stalled due to political disagreements, particularly criticism directed at the Biden administration.
During the hearing, various amendments were discussed, including those related to former President Donald Trump’s connections to the crypto industry. Concerns were raised about potential conflicts of interest due to the Trump family’s involvement in cryptocurrency projects. Top Democrat Maxine Waters opposed the bill, arguing it could benefit Trump and his associates at the expense of the public.
Both the House and Senate are working on their versions of stablecoin legislation, which differ in how they regulate issuers, especially foreign ones like Tether. The STABLE bill allows foreign issuers to operate in the U.S. for two years before they must comply with U.S. regulations, while the Senate’s GENIUS Act prohibits foreign issuance but allows foreign stablecoins to circulate in the U.S. market.
Debates also continue over whether stablecoins should earn interest. Coinbase CEO Brian Armstrong argued against government favoritism in this area, suggesting that allowing interest would enhance competition and benefit consumers.
Looking ahead, lawmakers may push forward with broader crypto regulations. Steil indicated that the stablecoin bill and market structure legislation are interconnected, and both are priorities for timely passage. Dante Disparte from Circle advocated for the STABLE Act, emphasizing the importance of clear regulatory pathways for stablecoins in the U.S.
