Breaking News: 32 Votes Secure STABLE Act Passage, Aiming to Tame the $550 Million: Committee Chairman Reacts

The U.S. Financial Services Committee has passed the Stablecoin Transparency and Accountability for a Better Ledger Economy Act (STABLE Act), marking a vital step toward establishing government oversight of stablecoins. The bill was passed on April 2 with a 32-17 vote. With the finance committee advancing it, the bill now moves to the House floor for further deliberation and amendment. The bill aims to provide a comprehensive regulatory framework, ensuring transparency from stablecoin issuers. It also addresses concerns about financial stability and consumer protection.

‘Stablecoins Should Enhance Payments, They’re Not Speculative Instruments’

This new stablecoin regulation outlines strict requirements for stablecoin issuers, including mandatory public disclosures about the reserves supporting these assets. It prohibits yield-bearing stablecoins, a feature that has sparked controversy in the industry. The bill also categorizes qualified issuers into federal institutions, nonbank entities approved by the Comptroller of the Currency, and state-supervised entities working under certified regimes.

The STABLE Act sets a regulatory framework for payment stablecoins that will protect innovation and consumers. pic.twitter.com/BJCUXlpcNr

— Financial Services GOP (@FinancialCmte) April 2, 2025

Committee Chair French Hill highlighted the importance of this legislation in encouraging innovation while safeguarding American finance. “The Act will reinforce Congress’s view that payment stablecoins should enhance payments rather than serve as speculative instruments,” Hill stated during the markup session. 

Crypto Market Erupts, Mixed Reactions to the STABLE Act

The reactions to this landmark act are all across the board. Dante Desparte, the Chief Strategy Officer of Circle, one of the largest stablecoin issuers,  expressed strong support for the bill, highlighting its potential to bring stability to the market. He said, “The U.S. will win when payment stablecoins that reference the dollar have a clear pathway to enter into the United States’ regulatory perimeter. We urge swift and bipartisan passage of the STABLE Act.”

Ahead of tomorrow’s .@FinancialCmte markup of the STABLE Act, we must first commend Chairman .@RepFrenchHill and .@RepBryanSteil on how the bill achieves a clear America first standard when it comes to the issuance and circulation of dollar-denominated payment stablecoins. Clear…

— Dante Disparte (@ddisparte) April 1, 2025

Pennsylvania Congressman Dan Meuser also took to X to express his fervent support of the stablecoin regulation. He wrote, “The STABLE Act reinforces the U.S. dollar’s status as the world’s reserve currency by ensuring stablecoins operate within a secure, dollar-backed framework, in America. It will make payments faster, cheaper, and more accessible, reducing costs to the benefit of businesses and consumers alike.”

The STABLE Act, led by @RepFrenchHill and @RepBryanSteil, reinforces the U.S. dollar’s status as the world’s reserve currency by ensuring stablecoins operate within a secure, dollar-backed framework, in America. It will make payments faster, cheaper, and more accessible, reducing… pic.twitter.com/1LuN6EpDZn

— Congressman Dan Meuser (@RepMeuser) April 2, 2025

However, critics have also argued that banning yield-bearing stablecoins hinders innovation. Famous crypto lawyer Carlo D’Angelo added, “Without yield, this isn’t financial innovation – it’s just banking as usual, but with a blockchain wrapper,”. On a similar note, the CEO of RUM, Chris Pavlovski, criticized the bill for prioritizing corporate interests over the nation’s. “ This is not America first. This is Wall Street, Coinbase & Circle first.” 

Donald Trump’s World Liberty Financial Stirs Controversies

While the legislation has witnessed some semblance of bipartisan support, it has not been devoid of debates. Democrats attempted to introduce amendments to prevent government officials from having any financial pursuits in stablecoin businesses.  This move was partly because of Donald Trump’s involvement in World Liberty Financial, a recent cryptocurrency firm issuing the USD1 stablecoin.

Maxine Waters explicitly stated, “With this stablecoin bill, this committee is setting an unacceptable and dangerous precedent, validating the president and his insiders’ efforts to write rules of the road that will enrich themselves at the expense of everyone else,”. Waters did not stand alone in her criticism of the bill, with Nydia Velazquez saying, “The Trump Administration is plagued by conflicts of interest and profiteering, particularly among those connected to crypto. President Trump’s and co-president Elon Musk’s ‘DOGE’ is itself a reference to a memecoin that Musk has long promoted on social media.”   

WATCH: @NydiaVelazquez speaks in favor of RM @RepMaxineWaters STABLE Act amendment, and highlights the Trump's Administration conflict of interests:
"The Trump Administration is plagued by conflicts of interest and profiteering, particularly among those connected to crypto.… pic.twitter.com/ZUc7UWladR

— House Committee on Financial Services – Democrats (@USHouseFSC) April 3, 2025

Long Way To Go for ‘Stable’ Stablecoin Regulation

These criticisms will ring in the ears of crypto enthusiasts worldwide, as World Liberty Financial recently completed $550 million in sales of its stablecoin. While the STABLE Act seems to be the first step in paving the road for cryptocurrency regulation worldwide, it has yet to tackle issues like the involvement of government officials and their ability to influence markets that affect traditional finance systems.