U.S. House Financial Committee Passes the STABLE Act for USD Stablecoins

The United States House Financial Committee has passed the Securing Transparency and Assuring Lawful Banking (STABLE) Act. The landmark piece of legislation is designed to provide regulatory clarity to USD-pegged stablecoins, most notably Tether (USDT) and Circle (USDC).

Following a protracted thirteen-hour deliberation led by Chair Representative French Hill and Subcommittee Chair Representative Bryan Steil, the US House Financial Services Committee passed the Act with a decisive 32-17 vote.

U.S. House Committee Passes STABLE Act

The STABLE Act sets clear rules for stablecoin payments. It aims to protect users and encourage new ideas in the digital money world.

The Act seeks to improve the U.S. payment system, keep the U.S. dollar strong worldwide, and make the U.S. a leader in the changing digital money market. Nonetheless, by passing the U.S. House Financial Committee, the Stable Act draws closer to full reality.

Moreover, the law plans to create rules for stablecoin payments to work efficiently in the US financial system. It focuses on stablecoins tied to the U.S. dollar, balancing new technology with the need to protect users. This careful balance shows a promise to use digital money’s positive aspects and lower its risks.

US President Donald Trump also said that stablecoins are essential for the economy and help keep the US dollar on top worldwide. Congressman Dan Meuser said the Act can make transactions easier. He said it puts stablecoins in a dollar-based system, which helps make financial tasks faster, cheaper, and easier to access.

The Act’s approval arrives at a crucial juncture, coinciding with market fluctuations induced by newly announced tariffs. Its passage signals a proactive approach to managing the potential impact of these fluctuations on the digital currency market.

US Banks Issue First-ever Tokenization Stablecoins 

Big banks are increasingly looking into stablecoins. Bank of America (BoA) might make its own, just like Standard Chartered, PayPal, and Revolut are doing.

Last month, Custodia Bank and Vantage Bank launched Avit. It’s the first stablecoin from a US bank that uses a public blockchain and Ethereum to move money. This shows that regular banks and new finance methods are coming together.

New rules suggest the US stablecoin market is ready to get much bigger. Both old and new banks and other financial groups are very interested. Nonetheless, the STABLE Act is important for how stablecoins will work in the US.