House Approves STABLE Act for Stablecoin Regulation 32-17

The U.S. House Financial Services Committee has approved the STABLE Act, a bill aimed at establishing a comprehensive regulatory framework for stablecoins. The vote, which took place on April 2, saw 32 votes in favor and 17 against, marking a significant step towards the U.S.’s first stablecoin regulatory framework.

The STABLE Act, short for the Stablecoin Transparency and Accountability for a Better Ledger Economy Act, received bipartisan support. Six Democrats joined the majority of Republicans in voting for the bill, while Rep. Davidson was the only Republican who voted against it due to the lack of “self-custody language.” The proposed legislation is now heading to the full House for a vote. If passed, it will move to the Senate for consideration before potentially reaching the President’s desk for signature.

The STABLE Act joins the Senate’s GENIUS Act, which was also approved by the Senate Banking Committee last month by a bipartisan vote of 18-6. The GENIUS Act is awaiting a full Senate vote. If passed, it will proceed to the House for consideration before potentially reaching the President’s desk. While both legislative proposals aim to establish a regulatory framework for stablecoins in the U.S., they currently differ in their specific approaches. Achieving consensus and minimizing these discrepancies between the two bills is crucial to avoid the need for a conference committee.

Sources in the cryptocurrency lobbying community indicate that efforts are underway to bridge the differences between the STABLE Act and the GENIUS Act to streamline the path to regulation. The House Financial Services Committee is also preparing to address the cryptocurrency market structure. The committee has scheduled its first hearing on this topic for next Wednesday.

In a statement celebrating the milestone, Taylor Barr, Government Affairs and PAC Manager at the Digital Chamber, said that the proposed legislation plays a key role in maintaining America’s position as a leader in the stablecoin ecosystem. The approval of the STABLE Act is seen as a significant step towards establishing a clear regulatory framework for stablecoins, which could pave the way for increased adoption and innovation in the digital currency space.

Several major firms are gearing up for their own stablecoin launch as the U.S. takes a closer step to the first regulatory framework for digital currencies pegged to a stable asset. Fidelity, the fund manager overseeing over $5 trillion in client assets, is reportedly in advanced stages of developing its stablecoin. Fidelity’s stablecoin, intended to function like cash within the cryptocurrency markets, will be managed through Fidelity’s digital assets division. Product development is part of Fidelity’s strategy to capitalize on tokenized US Treasuries.

Fidelity recently filed to launch a digital version of a US money market fund, putting them in direct competition with traditional asset managers. In a video address to the 2025 Blockworks Digital Asset Summit, President Donald Trump publicly called for Congress to pass the stablecoin law. Administration officials also confirmed during the event that the president aims to sign the stablecoin bills before Congress goes on recess in August 2025. Trump’s support for stablecoin legislation is part of his administration’s efforts to create a pro-digital asset regulatory environment in the U.S. In addition, the president believes stablecoins could help strengthen the American dollar’s dominance.

World Liberty Financial (WLFI), the DeFi venture backed by the Trump family, is also ramping up efforts to launch a U.S. stablecoin. Last week, the entity confirmed the launch of its stablecoin dubbed USD1. The confirmation came after the team was spotted making several test transfers for its stablecoin on the Ethereum and BNB Chain. Wintermute, a known crypto market maker, also participated in these transactions. WLFI just closed its second token sale, securing $550 million in total.