TLDR:
- House Financial Services Committee approved the STABLE Act with a 32-17 vote
- The act creates a regulatory framework for USD-pegged stablecoins with consumer safeguards
- Both Trump administration and lawmakers see stablecoins as important for USD dominance
- Traditional banks like Bank of America are exploring stablecoin launches
- Senate version (GENIUS Act) must be reconciled with House version before becoming law
The House Financial Services Committee has passed the long-awaited STABLE Act with a vote of 32-17 after a 13-hour discussion. This legislation creates the first comprehensive regulatory framework for USD-pegged stablecoins like Tether (USDT) and USD Coin (USDC).
The STABLE Act, formally named the Stablecoin Transparency and Accountability for a Better Ledger Economy Act, aims to establish clear guidelines for stablecoin payments while balancing innovation with consumer protection. Committee Chair Rep. French Hill highlighted how blockchain technology “continues to transform the way money moves.”
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
The vote comes as President Donald Trump has expressed support for stablecoins as tools to maintain US dollar dominance in global markets. Congressman Dan Meuser echoed this sentiment, stating that the act “reinforces the U.S. dollar’s status as the world’s reserve currency.”
Key Provisions and Goals
The legislation includes several important provisions. It creates a formal regulatory structure specifically designed for payment stablecoins. It establishes consumer safeguards while allowing continued innovation in the space.
The act aims to position the United States as a leader in digital asset development. It provides clear regulatory parameters for industry participants. Another goal is modernizing the U.S. payment infrastructure.
These regulations come at a time when traditional financial institutions are showing increased interest in stablecoins. Bank of America is reportedly exploring the possibility of launching its own stablecoin. This follows other major players like PayPal, Revolut, and Standard Chartered.
Just two weeks ago, Custodia Bank and Vantage Bank made history. They launched the first U.S. bank-issued stablecoin on a permissionless blockchain. Named Avit, this stablecoin was issued, transferred, and redeemed on the Ethereum network.
This growing interest from traditional banks shows the mainstream adoption potential of stablecoins. With clearer regulations in place, more financial institutions may enter the space.
Political Complications
The legislative process hasn’t been without controversy. Democrats raised concerns about potential conflicts of interest related to the Trump family’s connections to crypto ventures. The Trump family has entered the stablecoin market with USD1 through World Liberty Financial.
Some Democrats proposed amendments to prevent the president and cabinet members from offering stablecoin products while in office. Rep. French Hill acknowledged on Monday that Trump’s crypto dealings have made drafting stablecoin legislation “more complicated.”
The STABLE Act still faces several hurdles before becoming law. After clearing the committee, it will be reported out and scheduled for consideration by the full House of Representatives.
A separate version called the GENIUS Act exists in the Senate. This Senate bill recently passed through the Senate Banking Committee with bipartisan support, clearing with an 18-6 vote.
Both chambers must align their approaches to stablecoin regulation. Key differences exist in areas like state versus federal regulation and the treatment of foreign issuers such as Tether.
Once both the House and Senate approve their versions, any differences between them would need to be reconciled. Only then could the final legislation be sent to the President for signature or veto.
Wednesday’s development marks the committee’s second attempt to advance stablecoin legislation. A previous effort in 2023 stalled due to partisan disagreements during the Biden administration.
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