The US House Financial Services Committee has approved a bill aimed at regulating stablecoins in the United States.
On April 2, the Committee voted 32-17 in favor of the Stablecoin Transparency and Accountability for a Better Ledger Economy Act, which will now proceed to a vote in the full House.
Supported by Republican members, the bill seeks to establish clarity and order in the stablecoin market that includes USD-pegged currencies like USDT and USDC.
Introduced by Financial Services Committee Chairman French Hill along with Bryan Steil, Chairman of the subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, the STABLE Act proposes a specific regulatory framework for payment stablecoins, detailing the operational and backing requirements for issuers.
The focus is on enhancing consumer protections, ensuring issuer transparency, and reinforcing the importance of the US dollar in the digital financial landscape.
Issuers will be required to disclose how their tokens are backed, ensuring they maintain sufficient dollar-equivalent assets to support the total supply in circulation.
Key provisions also include implementing stringent consumer protection measures to minimize risk and bolster trust in the use of stablecoins for everyday transactions. Additionally, the bill aims to modernize the US payment infrastructure, facilitating quicker, more cost-effective transactions while allowing room for innovation.
Proponents of the legislation argue that it will help the US preserve its competitive advantage in digital asset development. Congressman Dan Meuser stated that the bill would strengthen the dollar’s role as the world’s reserve currency by keeping stablecoins anchored in a “secure, dollar-backed system.”
“It will make payments faster, cheaper, and more accessible, yielding cost advantages for both businesses and consumers. President Trump pledged to position America as the global leader in crypto, and the STABLE Act represents a significant step toward fulfilling that promise,” he mentioned in an April 2 post on X.
Congressman Troy Downing also remarked that this legislation would “allow innovation to continue flourishing in the US while safeguarding crucial consumer protections.”
As stablecoins become increasingly popular, the current administration has called for clear regulations, which David Sacks, Trump’s point person for crypto, asserts is essential for enhancing the dollar’s global leadership.
Congress is also considering an additional stablecoin measure, the GENIUS Act, proposed by Senator Bill Hagerty, which aims to create a federal regulatory framework for stablecoin issuers. This bill outlines specific guidelines regarding reserves, audits, transparency, and licensing and recently passed the Senate Banking Committee with an 18-6 vote.