The U.S. House Financial Services Committee has voted to move forward on a landmark bill aimed at regulating stablecoins, intensifying the debate over digital dollar frameworks and political entanglements.
Details of the STABLE Act
Named the “Stablecoin Transparency and Accountability for a Better Ledger Economy,” or STABLE Act, the bill passed with 32 votes in favor and 17 against. Introduced by Rep. French Hill (R-AR) and Rep. Bryan Steil (R-WI), the bill sets requirements for dollar-backed stablecoins, including one-to-one reserve backing, capital standards, and anti-money laundering controls.
Hill emphasized the importance of maintaining global competitiveness, saying, “Policymakers, regulators, and law enforcement must keep up with changes in blockchain technology.”
Trump’s Ties to Crypto Raise Concerns
During the markup session, multiple amendments were proposed addressing potential conflicts of interest due to President Donald Trump’s growing involvement in the crypto space. These include his family’s DeFi protocol project, tradable memecoins, NFTs, and a newly announced Bitcoin mining initiative.
Hill acknowledged that Trump’s involvement has “made our work more complicated.” Meanwhile, Rep. Maxine Waters (D-CA) criticized the bill, saying it “validates the president and his insiders’ efforts to write rules that will enrich themselves at the expense of everyone else.”
Dueling Senate Bill and Key Differences
A parallel stablecoin bill in the Senate, the GENIUS Act, introduces stricter controls on foreign issuers like Tether. While the House bill offers a two-year compliance window, the Senate version bans foreign issuance outright but permits secondary market circulation.
The Senate bill also empowers the Treasury Department to take enforcement action against non-compliant foreign issuers.
Interest on Stablecoins and Broader Legislation
Coinbase CEO Brian Armstrong reignited debate this week by calling for stablecoin interest payments to be legalized, urging lawmakers not to favor banks over crypto companies. Although this feature isn’t directly included in the STABLE Act, Armstrong believes onchain interest would benefit consumers.
Lawmakers are also preparing to revisit broader crypto regulation. The House Financial Services Committee will hold a hearing next week on market structure. Rep. Steil called both bills “peanut butter and jelly,” stating that Trump wants both delivered together.
Next Steps and Industry Reaction
Circle’s Chief Strategy Officer Dante Disparte urged lawmakers to pass the STABLE Act, noting that the U.S. stands to benefit from a regulatory framework that supports dollar-referenced stablecoins. “The U.S. will win when payment stablecoins have a clear pathway into regulatory compliance,” he said.
