STABLE Act Approved: What Does It Mean for the Future of Stablecoins?

STABLE Act Approved: Stricter Rules for Stablecoins Coming?

With 32 members voting in favor and 17 against, the House Financial Services Committee approved the STABLE Act on Wednesday, moving stablecoin legislation forward. The “Stablecoin Transparency and Accountability for a Better Ledger Economy Act” would provide a framework for stablecoins denominated in dollars, including anti-money laundering guidelines and reserve requirements.

French Hill, the chair of the House Financial Services Committee, emphasized during the markup session’s opening remarks how blockchain technology is still revolutionizing the flow of money. According to Hill, the measure is a component of their continuous endeavors to encourage financial innovation through prudent digital asset legislation.

Democrats Seek to Block Trump from Profiting Off Stablecoins While in Office

Notwithstanding the controversy surrounding President Donald Trump’s family’s involvement in cryptocurrency endeavors, including their entry into stablecoins using USD1 through World Liberty Financial, the voting went ahead. Concerned about possible conflicts of interest, Democrats proposed amendments early in the session that will prohibit the president and cabinet members from selling stablecoin products while in office. These worries relate to Rep. French Hill’s earlier Monday statement that the development of stablecoin legislation has become more difficult due to Trump’s cryptocurrency activities.

Stablecoin Legislation Gains Momentum as Senate Review Looms

Alongside it, the GENIUS Act will be examined. Before possibly making it to the Senate floor for a vote, the STABLE bill will go through a similar committee review procedure in the Senate after passing the House. Any discrepancies between the House and Senate versions would have to be resolved before the final law could be forwarded to the president for signing or veto if both chambers approved it. In conclusion, the development on Wednesday is the second time the committee has tried to move stablecoin legislation forward.

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