The bill passed with a 32-17 vote on April 2.
The US wishes to solidify USD’s dominance on the global economy via stablecoins
Photo Credit: Unsplash/ Josh Appel
The US is looking to regulate its stablecoin market with comprehensive guidelines. This week, the US House Financial Services Committee passed the proposed stablecoin bill – pushing it to the House floor for a full vote. The committee's Digital Assets Subcommittee reportedly worked with Tether to draft these regulations, media reports claim. Tether is the issuer of the world's largest stablecoin – USDT, that commands a market cap of over $144 billion (roughly Rs. 12,31,739 crore).
The bill, which now awaits final approval, is dubbed the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act of 2025. It aims to give issue guidance around stablecoin payments, regulate stablecoin issuers, and establish reserve auditing mandates for stablecoin firms.
The bill passed with a 32-17 vote on April 2, the Committee announced on X. Bryan Steil, the chief of the Digital Assets Subcommittee said that the STABLE Act is a foundational step towards securing the future of financial payments and solidifying the dollar's dominance as a world reserve currency.
Key Details About STABLE
The first draft of the bill was introduced in February this year.
Among proposed guidelines, the bill will prohibit crypto firms from creating stablecoins backed by self-issued assets. Only insured depository institutions or qualified nonbanks will be allowed to legally issue stablecoins backed by the US dollar, Treasury bills, insured deposits, or central bank reserves.
The US, through these guidelines, would direct all stablecoin issuers to maintain reserves on at least a 1:1 basis, ensure timely redemption procedures, disclose reserve composition monthly, and comply with Federal and State-level regulatory frameworks.
“Stablecoins, digital currencies pegged to stable assets like the US dollar, are already giving rise to innovation across industries. They allow American manufacturers to export products abroad easily and receive payments backed by the US dollar. Allow contractors at home to send payments faster and cheaper. Encourage entrepreneurs and other nations to conduct business with the US dollar. We must ensure that as we embrace these advancements, we also establish the necessary safeguards to protect consumers, maintain trust, and ensure the integrity of our financial systems,” Steil said, commenting on the Bill.
US lawmakers are reportedly aiming to finalise stablecoin regulations by August 2025.
US' Tryst with Crypto
Billionaire Donald Trump's election as the 47th President of the US brought crypto under a positive light following years of scrutiny. During his campaign, Trump said he plans to make US the crypto capital of the planet.
In the recent months following Trump's return to the White House, he signed multiple executive orders favouring the crypto sector.
He established a Crypto Task Force under the SEC to expediate work on the designing of crypto laws as well as created a strategic Bitcoin reserve and crypto stockpile. He also hosted the first Crypto Summit at the White House – bringing crypto leaders and US lawmakers under one roof to open discussions on US' pro-crypto roadmap.
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