House Financial Services Committee Advances Stablecoin Bill

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Ruholamin Haqshanas

Author

Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto…

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April 3, 2025 00:41 EDT

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The U.S. House Financial Services Committee has approved the advancement of a stablecoin bill that seeks to establish clearer regulations for the sector.

Known as the Stablecoin Transparency and Accountability for a Better Ledger Economy Act, or the STABLE Act, the legislation passed out of committee on Wednesday with 32 votes in favor and 17 opposed, according to a report by Bloomberg.

The bill, introduced by Committee Chair Rep. French Hill (R-Ark.) and Rep. Bryan Steil (R-Wis.), seeks to establish a comprehensive framework for the issuance and oversight of dollar-pegged stablecoins.

Stablecoin Bill Sets Strict Standards for Reserve Backing and Anti-Money Laundering

It includes provisions for one-to-one reserve backing, capital requirements, and anti-money laundering safeguards.

Speaking during the hearing, Hill emphasized the importance of regulation in maintaining the United States’ global competitiveness in financial technology.

“Blockchain technology continues to transform the way money moves,” Hill said. “Regulators must evolve alongside these innovations.”

This is not the committee’s first attempt to legislate stablecoins.

A similar initiative made progress in 2023 but ultimately stalled amid partisan disagreements and criticism of the Biden administration’s role in delaying negotiations.

The current version of the STABLE Act, however, is part of a renewed push to bring clarity to the rapidly evolving stablecoin sector.

The hearing also saw heated debate around several proposed amendments.

Key sticking points included how to handle foreign stablecoin issuers like Tether, and how former President Donald Trump’s growing involvement in crypto may impact policymaking.

Trump and his family have recently revealed interests in decentralized finance (DeFi), Bitcoin mining, and tradable meme coins—raising concerns about potential conflicts of interest.

Ranking Democrat Rep. Maxine Waters (D-Calif.) strongly opposed the bill, arguing that it risks empowering political figures with personal stakes in the crypto industry.

“This bill sets a dangerous precedent,” Waters said. “It validates efforts by insiders to write financial rules that benefit themselves.”

House and Senate Diverge on Stablecoin Regulation Frameworks

Differences also remain between the House and Senate versions of stablecoin legislation.

While the STABLE Act would allow foreign stablecoin issuers to operate under a transitional two-year grace period before complying with U.S. rules, the Senate’s GENIUS Act takes a stricter approach, barring new foreign issuers from entering the U.S. market but allowing already-issued tokens to circulate on secondary markets.

Industry voices have also weighed in. Circle’s chief strategy officer Dante Disparte urged lawmakers to pass the STABLE Act, saying it would solidify the U.S. position in the global digital economy.

Circle, which issues the USDC stablecoin, filed for an IPO just one day before the vote.

Looking ahead, the House Financial Services Committee plans to consider a broader market structure bill next week, potentially aligning with the stablecoin measure.

Rep. Steil described the two initiatives as closely linked, stating, “They’re like peanut butter and jelly—you need both for a complete sandwich.”

Last month, Federal Reserve Chair Jerome Powell affirmed the central bank’s support for developing a regulatory framework around stablecoins during a Senate hearing.

Powell stated that the Federal Reserve supports the creation of a regulatory framework for stablecoins, noting the importance of protecting consumers and savers.

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