The STABLE Bill was passed by the House Financial Services Committee amid concerns about conflicts of interest and disagreements between the two congressional chambers.
The House Financial Services Committee of the United States has marked an important step in regulating the cryptocurrency market by passing the "Stablecoin Transparency and Accountability for a Better Ledger Economy" (STABLE) bill. With 32 votes in favor and 17 against, this is considered the most serious effort by the US Congress to establish a legal framework specifically for USD-pegged stablecoins.
Under the guidance of Committee Chairman French Hill (Republican - Arkansas), the STABLE bill requires stablecoin issuers to maintain asset reserves at a 1:1 ratio, comply with anti-money laundering regulations, and meet strict governance standards. Notably, the bill opens a mechanism allowing foreign issuers like Tether to access the US market for two years before being required to comply with equivalent or direct US regulations.
Political Conflicts and Concerns about Personal Interests
However, the voting took place in a complex political context, with the relationship between former President Donald Trump and the crypto industry being closely scrutinized. Representative Maxine Waters (Democrat - California), the Democratic leader on the Committee, strongly opposed and accused the bill of creating a dangerous precedent.
Waters argued that the increasingly deep relationship between Trump's family and crypto projects – from memecoin to stablecoin and Bitcoin mining activities – has distorted the legislative process due to conflicts of interest. According to her, enacting the law at this time is no different from "legalizing law-writing for personal gain".
The debate is not only about Trump's role but also reflects deep differences between the House and Senate on how to manage stablecoins. While STABLE temporarily allows foreign issuers to operate, the corresponding Senate bill – GENIUS Act – advocates for completely banning stablecoin issuance in the US by foreign entities, only allowing secondary circulation. Additionally, GENIUS grants more power to the US Treasury to intervene in foreign issuers' activities.
Another contentious point is whether stablecoins should be allowed to pay interest to holders. Coinbase CEO Brian Armstrong supported this idea, while Chairman Hill suggested there is an "implicit consensus" in Congress that stablecoins should remain neutral and not directly compete with traditional banks' interest-generating functions.
The STABLE bill is closely linked to another bill about crypto market structure, expected to be reviewed by the committee next week. Representative Bryan Steil compared the two laws to "peanut butter and jelly" – needing to go together to create a "complete sandwich" on the President's desk.
Despite clear progress, the future of the STABLE bill remains uncertain. The differences between the House and Senate, along with increasingly apparent political fractures, make unifying the two bills difficult. As stablecoins become increasingly important financial infrastructure in the Web3 world, the battle for legislative control is not just a technical debate but a power struggle about influence and interests in the digital currency era.
