US lawmakers are moving closer to defining a national regulatory framework for stablecoins

This article explores the STABLE Act of 2025 (H.R. 2392), a bill that outlines regulatory standards for dollar-pegged stablecoins.

US lawmakers are moving closer to defining a national regulatory framework for stablecoins, with a major stablecoin bill advancing in Congress.

The House Financial Services Committee approved the STABLE Act of 2025 (H.R. 2392) on April 2. The bill, which now heads to the House floor, would set forth standards for dollar-pegged stablecoins. It passed with 32 members voting in favor and 17 opposed.

If enacted, the legislation aims to provide clarity for issuers of dollar-backed stablecoins. It would also include reserve requirements and anti-money laundering measures to protect consumers while promoting responsible innovation in the financial sector.

The bill's proponents, including Republicans, highlight the need for the US to take a leading role in the evolving digital asset space.

However, the bill has faced sharp criticism from several Democratic lawmakers.

Leading up to the vote, Democrats proposed amendments to block government officials, including the president, from holding financial interests in stablecoin-related ventures. But these proposals were not adopted.

Maxine Waters, the committee’s ranking Democrat, claimed that the bill sets a dangerous precedent and could benefit President Donald Trump by paving the way for a family-affiliated stablecoin to be used in federal transactions.

"This Committee is setting an unacceptable and dangerous precedent validating the President and his insiders’ efforts to write rules of the road that will enrich themselves at the expense of everyone else," said Waters.

Nydia Velazquez, another Democratic lawmaker, also expressed concerns about conflicts of interest tied to the Trump administration’s connections to the crypto industry.

"The Trump Administration is plagued by conflicts of interest and profiteering, particularly among those connected to crypto. President Trump’s and co-president Elon Musk ‘DOGE' is itself a reference to a memecoin that Musk has long promoted on social media."

Sylvia Garcia, a Democratic congresswoman from Texas, chimed in on X, formerly Twitter, to voice her dissent.

"Republicans are fast-tracking a stablecoin bill that allows Donald Trump, his family, and Elon Musk to continue to corruptly cash in on shady crypto schemes—all while Trump sits in the Oval Office. No rules. No accountability. Just profit off the backs of everyday investors and taxpayers."

Despite the criticism, Republican Committee Chair French Hill defended the legislation, emphasizing the importance of encouraging innovation and maintaining US leadership in global finance.

"We should prefer more competition and private sector activity in setting digital asset policies," stated Hill.Mentioned in this article