- The STABLE Act mandates full disclosure and dollar-equivalent reserves from stablecoin issuers operating in the United States.
- Lawmakers backing the bill see it as a move to strengthen the US dollar’s role in the digital economy and global finance.
- The legislation supports faster, cheaper payments while introducing transparency standards to ensure accountability among stablecoin issuers.
The United States House Financial Services Committee has passed a bill that seeks to establish a clear regulatory framework for stablecoins. On April 2, the Committee approved the Stablecoin Transparency and Accountability for a Better Ledger Economy Act by a 32–17 vote. The legislation will now move forward to the House floor for a full vote.
The STABLE Act emerged from the brains of Financial Services Committee Chairman French Hill and Subcommittee Chairman Bryan Steil. This bill establishes regulations for USDT and USDC payment stablecoins because they are linked to the value of the US dollar. The regulations specify detailed requirements that issuers must follow to maintain transparency along with sufficient asset security and perform operation duties correctly.
Emphasis on Consumer Protections and Payment Innovation
The legislation mandates issuers to maintain dollar-equivalent reserves and disclose how tokens are backed. Additionally, the bill includes provisions for consumer protection measures. These are aimed at increasing user trust and reducing systemic risk in stablecoin use. The bill also supports the modernization of the US payment infrastructure to encourage cost-effective and faster transactions.
Supporters believe the bill will help strengthen the US dollar’s role in the digital asset space. Congressman Dan Meuser said the legislation could reinforce the dollar’s global reserve currency status by keeping stablecoins within a secure, dollar-backed system. He also highlighted that the bill aligns with broader goals to make the US a leader in crypto finance.
Other Legislation Also Targets Stablecoin Oversight
Congress currently advances two stablecoin regulation bills in addition to the STABLE Act. The GENIUS Act received approval from the Senate Banking Committee through an 18–6 vote under the introduction of Senator Bill Hagerty.
The proposed law presents a federal licensing system for stablecoin companies in addition to audit requirements and reserve specifications, and disclosure mandates.
