House Financial Services Committee Votes to Advance Stablecoin Legislation

The House Financial Services Committee voted to advance stablecoin legislation Wednesday, approving the STABLE Act with 32 members in favor and 17 opposed.

The House Financial Services Committee has voted to advance stablecoin legislation, passing the STABLE Act with a vote of 32 members in favor and 17 opposed.

The bill, formally named the Stablecoin Transparency and Accountability for a Better Ledger Economy Act, would create a framework for dollar-denominated stablecoins, including reserve requirements and anti-money laundering standards. It also aims to prevent price volatility and promote financial stability.

During the markup session's opening remarks, House Financial Services Committee Chair French Hill highlighted how blockchain technology "continues to transform the way money moves." He added that the bill contributes to their "ongoing efforts" to foster "financial innovation through sound digital asset policy."

The vote comes amid controversy over President Donald Trump's family's connections to crypto ventures, such as their involvement in stablecoins with USD1 through World Liberty Financial.

Early in the session, Democrats raised concerns about potential conflicts of interest, proposing amendments to hinder the president and cabinet members from engaging in stablecoin endeavors while in office.

Those concerns tie into an earlier statement by Rep. French Hill on Monday regarding the president's crypto dealings making the task of drafting stablecoin legislation "more complicated."

The legislation will face two more obstacles before potentially becoming law. Following the markup, it will be reported out of committee and put on the House of Representatives' schedule for consideration.

Both the House and Senate must align their approaches, considering key differences in state versus federal regulation and the treatment of foreign issuers like Tether. The GENIUS Act, a separate version from the Senate, will be covered alongside it.

Once the STABLE bill passes the House, it will move to the Senate, where it will undergo a similar process of committee consideration before potentially reaching the Senate floor for a vote.

If both chambers approve the bill, any disparities between the House and Senate versions would need to be resolved before the final legislation could be forwarded to the President for his signature or veto.

Wednesday's development marks the committee's second attempt to advance stablecoin legislation. A previous initiative in 2023 failed due to partisan conflicts during the Biden administration.