The United States has passed the STABLE Act, a significant piece of legislation that establishes a formal regulatory framework for USD-pegged stablecoins like Tether (USDT) and Circle (USDC). This move is a major milestone for the U.S. stablecoin sector, providing clarity and structure to the industry.
The STABLE Act was approved by the House Financial Services Committee with a 32-17 vote, following a lengthy 13-hour discussion. The bill, which aims to create clear guidelines for stablecoin payments, strikes a balance between encouraging innovation and ensuring consumer protection.
Key Provisions of the STABLE Act:
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Establishment of a formal regulatory framework for payment stablecoins.
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Strong consumer safeguards while fostering technological development.
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Regulatory clarity for industry participants.
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Modernization of U.S. payment infrastructure.
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Reinforcement of the U.S. dollar’s dominance in global finance.
Rep. French Hill and Rep. Bryan Steil, leaders of the committee, celebrated the passing of the legislation, noting its importance for the future of stablecoin operations in the U.S. The act positions the U.S. as a global leader in digital asset development and ensures stablecoins continue to operate within a secure, dollar-backed system.
Global Implications:
Rep. Dan Meuser, a key proponent of the bill, highlighted its role in reinforcing the U.S. dollar’s status as the world’s reserve currency. He emphasized that the STABLE Act would not only make payments faster and more affordable but also reduce costs for businesses and consumers.
As the legislation passed, global markets experienced volatility, with U.S. President Donald Trump announcing reciprocal tariffs. Nevertheless, the STABLE Act signals a positive regulatory shift for USD-backed stablecoins, which are now better positioned to integrate into the U.S. financial system.
Rising Interest from Banks:
Traditional U.S. banks are increasingly exploring stablecoin launches. Bank of America is now considering its own stablecoin, following the lead of fintech giants like PayPal and Revolut. Recently, Custodia Bank and Vantage Bank made history by issuing the first U.S. bank-backed stablecoin, “Avit,” on a permissionless blockchain. This growing interest signals the broadening adoption of stablecoins in both the banking sector and beyond.
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