The STABLE Act, designed to regulate USD-pegged stablecoins like Tether (USDT) and Circle (USDC) in the United States, has advanced after a 32-17 vote in the House Financial Services Committee.
The legislation aims to establish a clear regulatory framework for stablecoin payments, balancing technological innovation with strong consumer safeguards. Congressman Dan Meuser emphasized that the act reinforces the U.S. dollar’s global leadership by ensuring stablecoins operate within a secure, dollar-backed framework.
Key provisions of the STABLE Act include:
- Formal Structure: Establishing a formal regulatory structure for payment stablecoins.
- Consumer Safeguards: Creating strong consumer safeguards while allowing for continued innovation.
- Global Leadership: Positioning the United States to maintain leadership in digital asset development.
- Clear Parameters: Providing clear regulatory parameters for industry participants.
- Modernizing Infrastructure: Modernizing the U.S. payment infrastructure.
Congressman Dan Meuser stated, “The STABLE Act reinforces the U.S. dollar’s status as the world’s reserve currency by ensuring stablecoins operate within a secure, dollar-backed framework, in America. It will make payments faster, cheaper, and more accessible, reducing costs to the benefit of businesses and consumers alike.”
Traditional U.S. banks are demonstrating renewed interest in USD-pegged stablecoins. Global banks and fintech firms are also introducing their own stablecoins, leveraging growing adoption and supportive regulations. Bank of America (BoA) is exploring launching its own stablecoin, following payment providers like Standard Chartered, PayPal, and Revolut.
Custodia Bank and Vantage Bank recently launched Avit, the first U.S. bank-issued stablecoin on the Ethereum network.