House Approves STABLE Act to Establish Crypto Asset Regulatory Framework for Stablecoins
The STABLE Act approachin' Senate after House Financial Services Committee nod
Took a step forward on April 2, as the US House Financial Services Committee voted 32 to 17 in favor of the STABLE Act. The act, which aims to regulate stablecoin issuers, now moves to a full House vote, followed by Senate approval to become law.
First proposed in 2020, the STABLE Act initially sought to require stablecoin issuers to obtain banking charters and comply with traditional banking regulations, but it failed to pass. The updated version, reintroduced in March, empowers the Office of the Comptroller of the Currency (OCC) to oversee federally qualified nonbank payment stablecoin issuers [1][2].
GOP Rep. Bryan Steil expressed enthusiasm for the bill, stating, "The STABLE Act protects consumers while cementing the U.S. Dollar as the world's reserve currency and promoting the next generation of Web3 businesses here in the United States" [3]. Republican Representative Mike Flood also voiced support, labeling it a step forward in advancing stablecoin regulation that preserves a robust state pathway for stablecoin issuers.
California Representative Young Kim added that stablecoins can help Americans grow their wealth and promote U.S. leadership both domestically and globally [3]. In contrast, Congressman Dan Meuser argued the legislation would make payments faster, cheaper, and more accessible, benefiting businesses and consumers [3].
Other stablecoin-related bills are working their way through Congress, including the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which outlines reserve rules for stablecoin issuers.
Contending in the Stablecoin Field
Currently, Tether dominates the stablecoin market, with a 60% share and $144 billion USDT in circulation. Circle follows closely behind with a 25% share and $60 billion USDC circulating, while USDS, formerly Maker's DAI, ranks third with a 3.4% market share and $8 billion circulating [4].
Earlier this week, Circle filed for an initial public offering with the U.S. Securities and Exchange Commission. On the other hand, Binance has delisted several stablecoins, including USDT, DAI, and TUSD, in European markets to meet stringent MiCA regulations.
Insights:
Key Development: The STABLE Act differs from earlier versions in crucial aspects:1. Regulatory Scope and Preemption: The current bill centralizes regulatory authority, while earlier proposals preserved a federal-state cooperative model [1].2. Bankruptcy Protections: The latest version includes provisions granting stablecoin holders priority in bankruptcy claims, unlike earlier bills [3].3. Enforcement and Agency Roles: Aligns with broader federal digital asset oversight trends [2].4. Stablecoin Definition and Compliance: Reflects the SEC's April 2025 guidance on stablecoin regulations [2].
Tension Points: The bill faces unresolved tensions in balancing federal oversight and state regulatory expertise [5]. It also could preempt state licensing systems and potentially destabilize oversight of over $50 billion in existing state-regulated stablecoin activity [5].
Sources:1. The Block: Schoon, Daniel. "STABLE Act rides another wave of support before potential House floor vote." March 25, 2025.2. Bloomberg Law: Bunyi, Nihal. "U.S. House panel supports stablecoin oversight, compressing digital footprint." April 5, 2025.3. Cryptocurrency Facts: "STABLE Act." Accessed April 7, 2025.4. CoinMarketCap: Accessed April 8, 2025.5. American Banker: Reilly, Ryan. "How a new stablecoin bill aims to balance risk and innovation." February 6, 2025.
- The STABLE Act is approaching the Senate after receiving a nod from the House Financial Services Committee, moving towards becoming law and regulating stablecoin issuers in the realm of Web3 trading and DeFi.
- The Senate's approval of the STABLE Act would grant the Office of the Comptroller of the Currency (OCC) the power to oversee federally qualified nonbank payment stablecoin issuers in the financial business and technology sector.
- In 2023, the STABLE Act is set to follow the original proposal in empowering the OCC to regulate stablecoin issuers but will include provisions for bankruptcy protections to prioritize stablecoin holders' claims.
- Currently, Tether (USDT) dominates the stablecoin market with a 60% share, followed closely by Circle and its USDC stablecoin, while USDS (formerly Maker's DAI) holds a 3.4% market share.
- Companies like Circle are acting by filing for an initial public offering with the U.S. Securities and Exchange Commission, while Binance withdraws certain stablecoins from European markets to meet stringent MiCA regulations.
- The forthcoming Senate decision could determine the future direction of stablecoin usage, helping Americans grow wealth, boosting U.S. leadership, and influencing the next generation in cryptocurrency, blockchain, and finance.
