TLDR
- The US House Financial Services Committee passed the STABLE Act in a 32-17 vote, creating a regulatory framework for stablecoins
- The Senate is considering a similar bill called the GENIUS Act, which passed committee with bipartisan support
- Both bills aim to establish standards for stablecoin reserves, consumer protection, and anti-money laundering measures
- The Trump family’s involvement in the stablecoin sector through World Liberty Financial’s USD1 has raised conflict of interest concerns
- US banks and financial institutions are showing increased interest in launching their own stablecoins as regulatory clarity emerges
The US House Financial Services Committee has approved legislation that would create the first comprehensive regulatory framework for dollar-pegged stablecoins. The committee passed the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act with a vote of 32-17, with six Democrats joining Republicans in support.
The bill, introduced in February by committee Chair French Hill and Digital Assets Subcommittee Chair Bryan Steil, aims to provide clear rules for payment stablecoins. These digital tokens are designed to maintain a steady value by being pegged to currencies like the US dollar.
Under the proposed legislation, stablecoin issuers would need to provide information about their business operations and demonstrate how they back their tokens. The bill seeks to balance innovation with consumer protection as stablecoins become more widespread in the financial system.
H.R. 2392, the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act of 2025 passed Committee 32-17. pic.twitter.com/pvzTOfTTr1
— Financial Services GOP (@FinancialCmte) April 3, 2025
Political Tensions and Conflict Concerns
The legislative process has not been without controversy. Representative Maxine Waters, the committee’s leading Democrat who voted against the bill, criticized her Republican colleagues during an earlier markup session.
Waters argued that the bill sets “an unacceptable and dangerous precedent” that could benefit President Donald Trump’s family interests. She expressed concern that Trump could use the bill to allow his family’s stablecoin to be used in government payments.
These concerns stem from the Trump family’s recent entrance into the cryptocurrency market. In late March, the Trump family’s World Liberty Financial launched a stablecoin called World Liberty Financial USD (USD1).
The controversy intensified when reports emerged that the US Housing Department was exploring the use of stablecoins for some of its functions. This timing raised questions about potential conflicts of interest.
Parallel Senate Efforts
The STABLE Act is not the only stablecoin legislation moving through Congress. The Senate Banking Committee has already approved a related bill called the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.
The GENIUS Act passed committee with strong bipartisan support in a 18-6 vote on March 13. Senator Bill Hagerty, one of the bill’s co-sponsors, updated it following consultation with Democrats on the committee.
Before the vote, Democratic Senator Kirsten Gillibrand noted that the updated GENIUS Act made improvements to key provisions, including consumer protections and the authorization process for stablecoin issuers.
Path to Becoming Law
Both the STABLE Act and GENIUS Act now await floor debates in their respective chambers. Industry observers note that there will likely be efforts to align the two bills in the coming weeks.
According to crypto journalist Eleanor Terrett, unnamed crypto lobbyists said there will be “a coordinated push behind the scenes” to make the bills mirror each other. This would help avoid the need for a conference committee to reconcile differences.
🚨NEW: Both the Senate’s GENIUS Act and the House’s STABLE Act have passed out of their respective committees.
So now what?
The bills await debate time on the floor and a vote in their respective chambers. In the meantime, two crypto lobbyists tell me there will likely be a… https://t.co/Paa8gmlNq1
— Eleanor Terrett (@EleanorTerrett) April 3, 2025
If both chambers pass their respective bills, any differences between the House and Senate versions would need to be resolved before final legislation could be sent to the President for signature or veto.
The current legislative momentum represents the second attempt to advance stablecoin regulation. A previous effort in 2023 stalled due to partisan disagreements under the Biden administration.
Industry Impact and Bank Interest
As regulatory clarity emerges, traditional financial institutions are showing increased interest in stablecoins. Bank of America is reportedly exploring the possibility of launching its own stablecoin.
Two weeks ago, Custodia Bank and Vantage Bank made history by launching Avit, the first US bank-issued stablecoin on a permissionless blockchain. The stablecoin was issued, transferred, and redeemed on the Ethereum network.
Other global banks and fintech firms including Standard Chartered, PayPal, and Revolut are also developing their own stablecoin offerings.
Congressman Dan Meuser emphasized how 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.”
He added that the legislation will “make payments faster, cheaper, and more accessible, reducing costs to the benefit of businesses and consumers alike.”
The development comes as President Trump has expressed support for stablecoins, stating they are important to the US economy and would help maintain the dominance of the US Dollar in global markets.
Committee Chair French Hill highlighted during the markup session how blockchain technology “continues to transform the way money moves.” He described the bill as part of ongoing efforts to promote “financial innovation through sound digital asset policy.”
