House committee passes STABLE Act

The U.S. House Financial Services Committee has approved the STABLE Act, a bill aimed at regulating stablecoins, with a vote of 32-17.

This legislation will now proceed to a full House vote, marking a significant step towards establishing a federal framework for stablecoins.

The STABLE Act focuses on providing transparency and accountability for payment stablecoins, which are digital tokens pegged to the value of a fiat currency like the U.S. dollar.

It requires issuers to disclose detailed information about their operations and reserve backing, ensuring that stablecoins are adequately supported by real assets.

This move is part of broader efforts to enhance consumer protection and maintain financial stability in the digital asset market.

The STABLE Act is one of two major bills addressing stablecoin regulation in the U.S.

The other is the GENIUS Act, which has already cleared the Senate Banking Committee.

Both bills aim to create a comprehensive regulatory framework for stablecoins, but they differ in their approaches.

The GENIUS Act emphasises federal oversight with options for state-level regulation for smaller issuers, while the STABLE Act provides more flexibility for state regulation as long as it aligns with federal standards.

The GENIUS Act also includes provisions for consumer protection, such as segregating customer assets and restricting high-risk financial activities using reserves.

It clarifies that payment stablecoins are not securities, which could reduce regulatory burdens for issuers.

President Donald Trump has expressed support for both bills, aiming to sign them into law by August to foster a pro-digital asset regulatory environment in the U.S.

This initiative reflects broader ambitions to position the U.S. as a leader in the global digital asset market, competing with regulatory developments in regions like the European Union and Dubai.

As stablecoin legislation advances, it faces scrutiny from lawmakers concerned about potential conflicts of interest and the impact on financial markets.

The passage of these bills could significantly influence the future of stablecoins and broader cryptocurrency regulation in the U.S.