The US House Financial Services Committee has officially approved the STABLE Act, which introduces significant regulatory oversight for USD-pegged stablecoins such as Tether (USDT) and Circle (USDC). The bill passed with a 32-17 vote after an intense 13-hour deliberation, led by Rep. French Hill and Rep. Bryan Steil.
The STABLE Act aims to bring structure to stablecoin transactions, ensuring both consumer protection and continued innovation within the financial sector. By enhancing the US payment system, the legislation seeks to solidify the dollar’s dominance in global markets and position the United States as a leader in the evolving digital currency landscape.
Rep. Dan Meuser emphasized that the act categorizes stablecoins as dollar-backed assets, facilitating faster, more affordable, and accessible transactions. This move is expected to streamline the adoption of stablecoins in everyday financial activities.
The act’s passage comes at a pivotal moment, following remarks from former President Donald Trump highlighting the strategic importance of stablecoins for maintaining US financial supremacy, particularly amid recent market fluctuations caused by tariffs.
Meanwhile, traditional financial institutions are keen to enter the stablecoin market. Notable players such as Bank of America are exploring the issuance of their own stablecoins, following the steps of companies like Standard Chartered, PayPal, and Revolut.
In a related development, Custodia Bank and Vantage Bank recently launched Avit, the first stablecoin issued by a US bank. Based on a permissionless blockchain and leveraging Ethereum for transfers, Avit marks a significant milestone in the integration of stablecoins within the US banking ecosystem.
With the STABLE Act in place, the US stablecoin market is poised for rapid expansion, drawing interest from both established financial institutions and newer, innovative players in the digital currency space.
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