The US House Financial Services Committee voted 32-17 to pass the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act of 2025, aimed at stablecoin regulation.
This legislative milestone comes amid growing activity in the stablecoin market. Competition is heating up as major traditional financial institutions prepare to enter the space.
Chairman French Hill and Representative Bryan Steil spearheaded the legislation (H.R. 2392). It seeks to establish a robust framework for stablecoin issuance, mandating 1:1 reserve backing, monthly audits, and AML requirements.
“This legislation is a foundational step toward securing the future of financial payments in the United States and solidifying the dollar’s continued dominance as a world reserve currency,” Representative Steil remarked.
The bill’s passage saw bipartisan support, with six Democrats voting in favor. Notably, this comes shortly after the US Senate Committee on Banking, Housing, and Urban Affairs greenlit the GENIUS Act. The bill passed in a bipartisan 18-6 vote.
“The bills await debate time on the floor and a vote in their respective chambers,” Journalist and Host of Crypto In America, Eleanor Terrett, noted.
According to Terrett, efforts are underway to align the two bills closely over the next few weeks. The aim is to address differences between the bills. Aligning them will make it easier to proceed without creating additional complications.
“If they can get them to be in relatively the same place on their own, it will avoid having to set up a so-called conference committee which is formed so members from both chambers can negotiate to create a final version of the bill everyone agrees on,” she added.
The drive for legislation occurs alongside rising activity in the stablecoin market. Global players are joining the fray.
For instance, in Japan, Sumitomo Mitsui Banking Corporation (SMBC) and major entities have signed a Memorandum of Understanding (MoU). The MoU initiates joint discussions on the potential use of stablecoins for future commercialization.
“This Agreement will see SMBC, Fireblocks, Ava Labs, and TIS collaborate to develop a framework for stablecoin issuance and circulation, including exploring key technical, regulatory, and market infrastructure requirements both in Japan and further afield. This Joint Discussion will not only focus on pilot projects but will aim to concretely define use cases for ongoing business applications,” the notice read.
In addition, Bank of America’s CEO previously revealed plans to launch a stablecoin once proper regulation is in place. Notably, BeInCrypto reported last month that the Office of the Comptroller of the Currency (OCC) had granted national banks and federal savings associations permission to provide crypto custody and certain stablecoin services.
That’s not all. The state of Wyoming is set to launch its own stablecoin, WYST, in July. Fidelity has also announced similar plans. Moreover, President Trump-backed World Liberty Financial officially launched its USD1 stablecoin in late March. This highlights continued interest in stablecoin adoption across both private and public sectors.
Meanwhile, Ripple announced the integration of its Ripple USD (RLUSD) into Ripple Payments. Changpeng Zhao (CZ), former CEO of Binance, reacted to the development on X.
“Stablecoin war, I mean healthy competition, just getting started,” CZ said.
As competition intensifies, the stablecoin market is also facing growing pains. Despite new entrants gaining traction, some players face heightened scrutiny.
Justin Sun, founder of Tron (TRX), recently accused First Digital Trust of insolvency. Following Sun’s allegations, First Digital USD (FDUSD) temporarily depegged.
The market’s future may hinge on the survival of only the most compliant and resilient stablecoins. This leads to a potential “purge” where weaker players fail to meet the increasing regulatory and market demands.
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