House Committee Advances Bipartisan STABLE Act for Stablecoin Regulation

The U.S. House Financial Services Committee has taken a significant step forward in advancing the “STABLE Act,” a bipartisan bill designed to create a dedicated federal framework for stablecoin regulation. This legislation has garnered substantial support from both Republicans and Democrats on the committee, indicating a rare instance of bipartisan cooperation in the realm of digital asset regulation.

The primary goal of the “STABLE Act” is to provide essential regulatory clarity for the stablecoin sector, which has faced considerable uncertainty due to the rapid growth and evolution of digital assets. The bill aims to establish clear guidelines for stablecoin issuance, redemption, and reserve requirements, thereby enhancing the stability and security of these digital assets. This framework is intended to foster innovation in the digital currency space while mitigating the risks associated with unregulated stablecoins.

Key sponsors of the “STABLE Act” include prominent Representatives such as French Hill, Ritchie Torres, Tom Emmer, and Bill Huizenga. Committee Chairman French Hill emphasized the need for clear federal regulations to ensure the safe and effective use of stablecoins within the U.S. financial system. He stressed that the bill aims to create practical “guardrails, not roadblocks” for ongoing financial innovation in this space. This perspective reflects the bipartisan consensus within the committee, which views stablecoin innovation as vital but requiring careful management to mitigate potential consumer protection and financial stability risks.

Stablecoins are a type of digital asset typically pegged to the value of a reserve asset, such as the U.S. dollar. They offer a faster, more efficient alternative to traditional payment systems, making them appealing for facilitating low-cost global payments. Supporters of the “STABLE Act” argue that with a robust U.S. regulatory framework, dollar-pegged stablecoins could even help strengthen the U.S. dollar’s international position as the world’s primary reserve currency.

In addition to the primary “STABLE Act,” several other related digital asset bills were discussed during the committee hearing. Notable among these were H.R. 2392, titled the “Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act of 2025,” and H.R. 2384, the “Financial Technology Protection Act of 2025.” These related bills, along with various proposed amendments discussed, broadly aim to address wider regulatory concerns surrounding new digital financial technologies and help ensure the safety of consumers and businesses interacting with them.

The advancement of the “STABLE Act” is a positive development for the stablecoin industry, as it provides a clear path towards regulation and transparency. By establishing a federal framework for stablecoin issuance, the act aims to foster innovation in the digital currency space while mitigating the risks associated with unregulated stablecoins. The bipartisan support for the act is a testament to the growing recognition of the importance of stablecoins in the financial ecosystem, and its progress in the House committee is a significant step towards achieving these goals.