Lawmakers Push Forward with Stablecoin Regulation Despite Controversies

Lawmakers have taken a major step toward regulating stablecoins as the House Financial Services Committee voted in favor of a new bill aimed at bringing order to the sector.

The proposal, known as the STABLE Act, seeks to establish a clear framework for dollar-pegged stablecoins, introducing reserve requirements and anti-money laundering measures. Committee Chair French Hill emphasized that regulation is crucial for maintaining the country’s financial competitiveness in a landscape increasingly shaped by blockchain innovation.

This legislative push marks the committee’s second attempt to regulate stablecoins after previous efforts stalled amid political disagreements. The STABLE Act proposes that foreign issuers, such as Tether, could initially operate within the U.S. but would eventually need to align with local regulations after two years.

Meanwhile, a competing Senate proposal, the GENIUS Act, suggests a more restrictive approach by barring foreign stablecoin issuance entirely, while still allowing secondary market trading.

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A key sticking point has been whether stablecoins should offer interest, with some like Coinbase CEO Brian Armstrong advocating for it to promote innovation. Despite mixed opinions, Hill noted there’s been broad consensus on Capitol Hill regarding this provision.

Controversy also surrounds President Donald Trump’s growing involvement in the crypto space, from DeFi projects to Bitcoin mining. Some lawmakers worry that his ties to digital assets could complicate the legislative process, fearing potential conflicts of interest.

Meanwhile, institutional voices like Circle’s Chief Strategy Officer Dante Disparte support the bill, arguing that clear regulations will strengthen the U.S. position in global digital payments. As lawmakers continue to refine the details, the broader push for crypto regulation remains a work in progress, with hearings on market structure expected soon.

Alexander Stefanov