On March 26, the U.S. House of Representatives introduced a revised version of the Stablecoin STABLE Act, making significant adjustments to the draft from February 5.

The bill aims to regulate payment stablecoins, establish a new compliance mechanism, expand regulatory powers, and clarify key definitions regarding digital assets backed by the U.S. dollar.

The 2025 STABLE Act was formally proposed by Republican Representative Bryan Steil from Wisconsin and Republican Representative French Hill from Arkansas, dedicated to creating a federal-level stablecoin issuance framework.

Additionally, the bill categorizes qualified issuing institutions into three types: federal regulatory agencies, non-bank entities approved by the Office of the Comptroller of the Currency, and state-licensed institutions operating under a certification system.

New Clauses and Structural Changes

Compared to the initial draft from early February, the March 26 revised version introduced several substantive changes.

The updated bill explicitly excludes various financial products such as securities, deposits, and credit union accounts from the definition of "payment stablecoins". This exclusion provision provides developers and institutions with clearer legal understanding of the qualified scope.

The new draft requires monthly reserve proof verification by a registered public accounting firm and mandates that the CEO and financial officers certify the accuracy of these reports.

Deliberately submitting false certification may face criminal penalties of up to $1 million in fines or 10 years of imprisonment. These certification clauses were not present in the February version.

Further updates include detailed procedures for reviewing and approving new stablecoin issuers. The revised draft sets decision-making timelines for federal regulatory agencies, provides formal appeal rights, and allows applicants to reapply after rejection.

Regulators must also submit annual reports to Congress regarding the processing time of pending applications.

Bill Huizenga, a Republican Representative from Michigan and an original co-sponsor of the bill, emphasized its importance on the X platform:

"Stablecoins have the potential to simplify our payment system and revolutionize how we transfer funds. I am proud to be an original co-sponsor of these two bills with Representatives Bryan Steil and French Hill and look forward to the revised review next week."

Rule-Making and Industry Coordination

A key addition is the requirement for regulators to initiate rule-making procedures within 180 days of the bill's enactment, to clarify application requirements and streamline approval processes for well-capitalized entities.

The bill also provides clear protection for issuers using public, decentralized networks, clarifying that such design choices should not be grounds for rejection, which is an important safeguard for developers building on blockchain infrastructure.

Both February and March versions aim to exclude payment stablecoins from securities classification. However, the new version more comprehensively revises regulations under the Investment Advisers Act, Securities Act, Exchange Act, and Securities Investor Protection Act to ensure consistent treatment in financial regulation.

The updated STABLE Act integrates the handling of decentralized and non-payment stablecoins into a single research clause and restructured its approach to international interoperability.

According to the revised Section 10, the Treasury will coordinate with foreign jurisdictions to assess comparability and support cross-border stablecoin use, replacing the independent peer clause in earlier drafts.

Additional Provisions

The March 26 bill imposes strict reserve standards on stablecoin issuers, requiring full backing by cash equivalents such as Treasury bills or demand deposits.

It also prohibits issuers from paying yields to token holders and restricts issuer activities to core functions like issuance, redemption, and custody services.

To protect consumers, the bill includes provisions that clearly state the U.S. government does not insure stablecoins and prohibit any false statements to the contrary. Violations may trigger civil penalties or criminal proceedings under existing federal law.

The March 26 revision indicates that both parties in Congress are reaching a consensus on formalizing stablecoin regulation and adapting financial policy to blockchain-native payment systems.

It also reflects a stronger response to the needs of developers and institutions operating in the intersection of financial technology and traditional banking.

The U.S. House Financial Services Committee is expected to review and revise the bill in the coming days. During the review, committee members will examine various perspectives and discuss amendments.