The United States House Committee on Financial Services Republicans has submitted a bill to evaluate stable transactions within its region. The bill aims to establish a regulatory framework solely for monitoring stablecoins used in the country.
🚨NEW: @FinancialCmte Chairman @RepFrenchHill and Digital Assets subcommittee chair @RepBryanSteil have just released a discussion draft of a House bill to establish a regulatory framework for U.S. stablecoins.
Here’s the text:https://t.co/VfxI6gKtLP pic.twitter.com/z21dZBf6Ij
— Eleanor Terrett (@EleanorTerrett) February 6, 2025
Stablecoins are cryptocurrencies tied to a particular fiat currency to hold its steady value. Issuers hold liquid assets equivalent to the volume of stablecoins in circulation.
Stablecoin Regulation Needed
To ensure stablecoins regulation, the agency has proposed the “Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025” or the “STABLE Act of 2025.”
As part of the regulatory policy, only firms and personnel authorized by the approval of the primary Federal or State payment stablecoin regulator have the right to issue a stablecoin in the U.S. Meanwhile, they must operate within the outlined regulations.
Supporting the motion, U.S. Federal Reserve Governor Christopher Waller recently noted that stablecoins will be instrumental in promoting the USD’s status as a reserve currency. However, clarified rules and regulations should be enacted to achieve this.
Additionally, according to Moody’s investors report on stablecoins instability over the years, a lack of regulation is one of the factors affecting the market.
“Stablecoins have lost their pegs to reference assets on multiple occasions, driven by market events such as the implosion of Terra UST, the FTX crash, regulatory enforcement actions, and recent security breaches on DeFi protocols and attacks on stablecoin liquidity pools,” it added.
U.S. Crypto Adoption Soars
Following President Trump’s victory and inauguration, the United States has become more lenient with cryptocurrencies, making a fertile ground for crypto traders and firms.
Recently, many asset managers have started submitting applications for altcoins exchange-traded funds (ETFs). The crypto-friendly administration has increased optimism. Thus, the firms look forward to approval in no distant time. According to Bloomberg senior ETF analyst James Seyffart, the Securities and Exchange Commission (SEC) has acknowledged applications for a spot Solana ETF.
Meanwhile, the crypto community looks up to the fulfillment of Trump’s promise to make America the world’s capital of bitcoin and crypto.
