U.S. House Financial Services Committee Advances “STABLE Act” Aimed at Creating a Dedicated Framework for Stablecoin Regulation

The STABLE Act, designed to create a dedicated federal framework specifically for stablecoin regulation, has reportedly gained significant bipartisan support.

The U.S. House Financial Services Committee took a major step forward Wednesday in advancing the “STABLE Act,” designed to create a dedicated federal framework specifically for stablecoin regulation.

The bill, which has reportedly garnered significant bipartisan support, would provide essential regulatory clarity for the stablecoin sector, a market that has faced considerable uncertainty due to the rapid growth and evolution of digital assets generally in recent years.

Prominent members of the committee, including French Hill (R-AR), Ritchie Torres (D-NY), Tom Emmer (R-MN), and Bill Huizenga (R-MI), are among the key sponsors of the STABLE Act. The legislation is expected to pass out of the committee in the coming weeks.

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What Is the STABLE Act?

The STABLE Act, an acronym for Stablecoin Transparency and Accountability for a Better Ledger Economy, aims to establish a clear and practical regime for stablecoins used in or affecting U.S. commerce.

The bill would create a licensing regime for stablecoin issuers, setting forth capital and liquidity requirements, and consumer protection and anti-money laundering standards that must be met.

The legislation would also require stablecoin issuers to maintain adequate reserves in a highly liquid, low-risk asset, such as Treasury securities, to ensure the stability of the pegged value of the stablecoin.

Why Is There a Need for STABLE Act?

The committee chairman, French Hill, highlighted the urgency of having clear federal regulations to ensure the safe and effective use of stablecoins within the U.S. financial system.

“We need to set up the framework, the regimes, the rules of the road, and provide the certainty that is required for the U.S. to be the leader in this emerging technology,” Chairman Hill said.

He added that the bill aims to create practical “guardrails, not roadblocks” for ongoing financial innovation in this space.

This perspective reportedly reflects the apparent bipartisan consensus reached within the committee: while stablecoin innovation is viewed as vital, it requires careful management to mitigate potential consumer protection and financial stability risks.

What Are Stablecoins and Their Potential Benefits?

Stablecoins are a type of digital asset typically pegged to the value of a reserve asset, in this case, fiat currency as the U.S. dollar.

They offer a faster, more efficient alternative to traditional payment systems, making them appealing for facilitating low-cost global payments.

Supporters of the STABLE Act argue that with a robust U.S. regulatory framework, dollar-pegged stablecoins could even help strengthen the U.S. dollar’s international position as the world’s primary reserve currency.

Several other related digital asset bills were also discussed during Wednesday’s committee hearing.

These included H.R. 2392, titled the “Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act of 2025,” and H.R. 2384, the “Financial Technology Protection Act of 2025.”

These related bills, along with various proposed amendments discussed, broadly aim to address wider regulatory concerns surrounding new digital financial technologies and help ensure the safety of consumers and businesses interacting with them.

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