STABLE Act Passes House Committee, Creating Framework for USD Stablecoins

by · Blockonomi

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  • The U.S. House Financial Services Committee approved the STABLE Act with a 32-17 vote
  • The bill creates a regulatory framework for USD-pegged stablecoins like USDT and USDC
  • Six Democrats joined Republicans in supporting the bill despite concerns about Trump family connections to stablecoins
  • The Senate has its own version called the GENIUS Act that passed committee with bipartisan support
  • Traditional banks including Bank of America are exploring stablecoin launches as regulation clarifies

The United States has taken a major step toward regulating stablecoins with the House Financial Services Committee’s approval of the STABLE Act. The committee passed the bill with a 32-17 vote on April 2 after a 13-hour discussion. Six Democrats joined Republicans to move the legislation forward.

The STABLE Act, formally named the Stablecoin Transparency and Accountability for a Better Ledger Economy Act, aims to create clear guidelines for USD-pegged stablecoins. These digital assets include popular tokens like Tether (USDT) and Circle (USDC).

Committee Chair Rep. French Hill and Subcommittee Chair Rep. Bryan Steil announced the decision to advance the bill. Hill stressed how blockchain technology “continues to transform the way money moves” during opening remarks.

The bill forms part of ongoing efforts to promote financial innovation through sound digital asset policy. It would establish a formal regulatory structure for stablecoins while maintaining balance between innovation and consumer protection.

Political Tensions Around Trump Connections

The vote proceeded despite controversy over President Donald Trump’s family connections to crypto ventures. The Trump family recently launched World Liberty Financial USD (USD1), a stablecoin through their World Liberty Financial venture.

Democrats raised concerns about potential conflicts of interest during the markup session. They suggested amendments to prevent the president and cabinet members from offering stablecoin products while in office.

Rep. Maxine Waters, who voted against the bill, criticized her Republican colleagues for “setting an unacceptable and dangerous precedent.” She argued the bill could allow Trump’s family stablecoin to be used in government payments.

Rep. French Hill acknowledged on Monday that Trump’s crypto dealings have made drafting stablecoin legislation “more complicated.” Despite these concerns, the bill moved forward with bipartisan support.

Path to Becoming Law

The legislation now faces additional hurdles before becoming law. After the markup, it will be reported out of committee and scheduled for consideration by the full House of Representatives.

The Senate has its own version called the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins). This bill passed through the Senate Banking Committee by a vote of 18-6 on March 13.

Five Senate Democrats joined Republicans to push the Senate bill forward. These included bill cosponsor Angela Alsobrooks and other Banking Committee members.

Both chambers must align their approaches on key differences. These include state versus federal regulation and the treatment of foreign issuers such as Tether.

According to crypto journalist Eleanor Terrett, unnamed crypto lobbyists expect “a coordinated push behind the scenes” to align the two bills. This would avoid the need for a conference committee to reconcile differences.

Banks Join the Stablecoin Movement

Traditional US banks are showing increased interest in USD-pegged digital assets as regulatory clarity emerges. Bank of America is exploring the possibility of launching its own stablecoin.

Custodia Bank and Vantage Bank recently made history. They launched the first U.S. bank-issued stablecoin on a permissionless blockchain. Named Avit, the stablecoin operates on the Ethereum network.

Global banks and fintech companies are also developing stablecoins. Payment providers like Standard Chartered, PayPal, and Revolut have shown interest in the technology.

The STABLE Act aims to position the United States to maintain leadership in digital asset development. It also seeks to modernize U.S. payment infrastructure through stablecoin integration.

Congressman Dan Meuser emphasized how the act will reinforce the U.S. dollar’s global position. He stated, “The STABLE Act reinforces the U.S. dollar’s status as the world’s reserve currency by ensuring stablecoins operate within a secure, dollar-backed framework, in America.”

Meuser added that it will “make payments faster, cheaper, and more accessible.” This could reduce costs for businesses and consumers alike.

President Trump previously stated that stablecoins are important to the US economy. He suggested they would help maintain the dominance of the US Dollar in global markets.

The announcement comes as markets face volatility following Trump’s announcement of reciprocal tariffs. The stablecoin legislation represents a rare area of bipartisan agreement in the current political climate.

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