On March 26, the US House of Representatives unveiled a revised version of the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, significantly altering the draft from February 5.
This new legislation seeks to regulate payment stablecoins, implement fresh compliance mechanisms, enhance oversight capabilities, and clarify critical definitions related to the issuance and utilization of digital assets pegged to the dollar.
Formally put forward by Representatives Bryan Steil (R-WI) and French Hill (R-AR), the STABLE Act of 2025 aims to establish a federal framework for the issuance of payment stablecoins.
Moreover, the proposal categorizes qualified issuers into federally regulated institutions, nonbank entities authorized by the Comptroller, and state-approved entities operating under certified regimes.
Changes and new provisions
The revision from March 26 introduces several significant modifications compared to the original draft from February.
The updated legislation clearly excludes a variety of financial products, including securities, deposits, and credit union accounts, from the definition of “payment stablecoin.” This exclusion provides greater legal clarity for developers and institutions regarding what falls under the act.
The new draft requires monthly reserve attestations, which must be verified by registered public accounting firms, and mandates that chief executive and financial officers certify the accuracy of these reports.
Knowingly submitting false certifications could lead to criminal charges with fines up to $1 million or potential prison sentences of up to 10 years. These certification requirements were not included in the earlier version.
Additionally, the revised draft outlines explicit procedures for the review and approval of new stablecoin issuers. It sets deadlines for federal regulators to make decisions, provides formal appeal rights, and allows applicants to reapply after a denial.
Regulators are also required to deliver annual reports to Congress regarding the status of pending applications.
Representative Bill Huizenga (R-MI), a primary cosponsor, emphasized the significance of the bill in a post on X. He stated:
“Stablecoins have the potential to simplify our payment systems and revolutionize the way we move money. I’m proud to be an original cosponsor of this bipartisan bill with Representative Bryan Steil and Representative French Hill and look forward to next week’s markup.”
Regulatory framework and industry alignment
A crucial addition is the requirement for regulators to commence rulemaking within 180 days of the bill’s enactment to define application criteria and expedite approvals for well-capitalized entities.
The legislation also clearly protects issuers utilizing public, decentralized networks, indicating that such a design choice cannot be a basis for denial, but rather an important assurance for developers working on blockchain technology.
Both the February and March drafts aim to keep payment stablecoins from being designated as securities. However, the newer version more thoroughly amends related statutes under the Advisers Act, Securities Act, Exchange Act, and SIPA to ensure consistent application across financial regulations.
The revised STABLE Act consolidates its treatment of decentralized and non-payment stablecoins into one study provision and restructures its approach to international interoperability.
Under the modified Section 10, the Treasury will collaborate with foreign jurisdictions to evaluate comparability and facilitate cross-border stablecoin transactions, replacing the standalone reciprocity section from the earlier draft.
Further provisions
The bill from March 26 enforces stringent reserve requirements on stablecoin issuers, demanding full backing with cash-equivalent assets like Treasury bills or demand deposits.
It also forbids issuers from providing yields to token holders and limits issuer activities to essential functions such as issuance, redemption, and custody services.
To safeguard consumers, the legislation includes statements clarifying that the US government does not insure stablecoins and prohibits any misrepresentation to that effect. Violations may result in civil penalties or criminal prosecution under existing federal laws.
The revision on March 26 indicates a growing bipartisan agreement in Congress to formalize the regulation of stablecoins and to adjust financial policies to fit blockchain-based payment systems.
Additionally, it reflects a heightened responsiveness to the needs of developers and institutions operating at the intersection of fintech and conventional banking.
The House Financial Services Committee is expected to address the bill for markup in the coming days, which is a period for committee members to review opinions and discuss amendments.
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