Legislators in the U.S. are progressing towards establishing a national regulatory framework for stablecoins, with significant legislation gaining traction in Congress.
On April 2, the House Financial Services Committee approved the STABLE Act of 2025 (H.R. 2392), an important bill that delineates regulatory criteria for stablecoins pegged to the dollar. The proposal passed with 32 votes in favor and 17 against.
If enacted, the bill would create specific guidelines for the issuance and management of dollar-backed stablecoins. It would introduce reserve requirements and anti-money laundering protocols to safeguard consumers while fostering responsible innovation within the financial industry.
Supporters of the STABLE Act contend that it delivers long-awaited clarity for stablecoin issuers. They believe a standardized framework would diminish regulatory ambiguity and bolster the U.S.’s standing in the rapidly changing digital asset landscape.
Criticism from Democrats
Despite advancing through the legislative process, the bill has encountered significant pushback from several Democratic representatives.
In the lead-up to the vote, Democrats proposed revisions aimed at preventing government officials, including the president, from holding financial stakes in stablecoin-related businesses. These amendments were ultimately not adopted.
Representative Maxine Waters, the ranking Democrat on the committee, criticized the legislation, labeling it a “dangerous precedent.” She argued that it could benefit Donald Trump by facilitating the creation of a family-affiliated stablecoin for federal transactions.
Waters warned:
“This Committee is setting an unacceptable and dangerous precedent validating the President and his insiders’ efforts to write rules of the road that will enrich themselves at the expense of everyone else.”
Representative Nydia Velazquez echoed these sentiments, highlighting ongoing conflicts of interest related to the Trump administration’s ties to the crypto sector.
She stated:
“The Trump Administration is plagued by conflicts of interest and profiteering, particularly among those connected to crypto. President Trump’s and co-president Elon Musk’s ‘DOGE’ is itself a reference to a memecoin that Musk has long promoted on social media.”
Representative Sylvia Garcia also remarked:
“Republicans are fast-tracking a stablecoin bill that allows Donald Trump, his family, and Elon Musk to continue to corruptly cash in on shady crypto schemes—all while Trump sits in the Oval Office. No rules. No accountability. Just profit off the backs of everyday investors and taxpayers.”
In response to the criticism, Republican Committee Chair French Hill defended the proposal, stressing the need to stimulate innovation and maintain U.S. leadership in global finance.
Hill asserted that digital asset policies should focus on fostering competition and promoting private sector development.
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