STABLE Act Advances as House Committee Approves Stablecoin Framework

YEREVAN (CoinChapter.com) — The STABLE Act passed the House Financial Services Committee with a 32–17 vote on Apr. 2, moving forward to a full House floor vote. The bill, focused on creating a stablecoin framework, received support from six Democrats alongside Republicans.

On Feb. 6, 2025, Representatives French Hill and Bryan Steil introduced the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act. This bill seeks to create a comprehensive regulatory framework for payment stablecoins, particularly those pegged to fiat currencies like the U.S. dollar.

The STABLE Act’s drafting process reportedly included input from Tether, the issuer of the world’s largest stablecoin. Paolo Ardoino, Tether’s CEO, emphasized the company’s commitment to adapting to U.S. legislation and ensuring their perspective is considered in the legislative process.

A key objective of the STABLE Act is to bolster the U.S. dollar’s position as the world’s reserve currency. By implementing clear regulations for stablecoins, the bill aims to support innovation and ensure that dollar-backed stablecoins contribute positively to the global financial system.

The bill proposes mandatory disclosures by stablecoin issuers, including how they back their tokens and the details of their business operations. It outlines a federal structure for regulating payment stablecoins, aiming to define the obligations of private companies operating in this space.

Maxine Waters Opposes STABLE Act Over Trump Stablecoin Concerns

During the markup session, Representative Maxine Waters voiced strong opposition to the STABLE Act, arguing it could create opportunities for political or private financial interests to benefit through legislation. She later voted against the bill, emphasizing concerns over potential misuse in federal systems.

Waters specifically cited the USD1 stablecoin, launched in late March by the Trump family’s crypto venture, World Liberty Financial. She warned that the STABLE Act might allow such stablecoins in government programs.

“This bill validates Trump and his insiders’ efforts to write rules of the road that will enrich themselves at the expense of everyone else,”

she stated.

The concerns follow recent remarks by Chairman French Hill, who said they would work with the Trump administration to “deliver a dollar-backed stablecoin for the American people.” The administration also confirmed plans to bring stablecoins onshore and regulate them. Trump’s crypto advisor David Sacks supported the push, stating stablecoins could “extend the dollar’s dominance internationally.”

These developments led Waters to question whether the bill’s language could indirectly support private ventures, including those led by politically connected individuals. Her stance highlights ongoing debate over the federal role in promoting dollar-backed stablecoins while preventing undue influence.

Reports from the same period suggested that the U.S. Housing Department was exploring stablecoin use in government functions. Waters argued the bill could allow a Trump-backed stablecoin to be used in social housing or federal payments if no restrictions are added.

Stablecoin Framework May Impact Public Payment Programs

The timing of the USD1 launch raised concerns within Congress. With the STABLE Act advancing, some lawmakers questioned whether federal agencies could eventually adopt private stablecoins like USD1 for public transactions.

While the bill does not directly endorse any stablecoin, it leaves open the possibility of its use in regulated systems. Critics said this might allow stablecoins issued by politically connected entities to enter government programs.

As the House floor vote approaches, debate continues on how stablecoin regulation will shape private and public sector usage. The STABLE Act remains central to this discussion, especially due to its potential influence on federal financial tools.

GENIUS Act Moves Forward with Senate Banking Committee Vote

In parallel, the GENIUS Act — short for Guiding and Establishing National Innovation for U.S. Stablecoins — also advanced. The Senate Banking Committee passed the stablecoin framework bill on Mar. 13 with an 18–6 vote.

Senator Bill Hagerty, the bill’s co-sponsor, made updates after consulting Democratic members. The revised GENIUS Act addresses oversight, reserves, and other technical rules for stablecoin issuers. It aims to outline who can issue stablecoins and how their value must be backed.

Senator Kirsten Gillibrand said the updates improved consumer protections and other provisions. Her comments followed bipartisan discussions focused on aligning the GENIUS Act with concerns from both parties. The Senate version now awaits full chamber debate.

Coordinated Push Underway to Align STABLE Act and GENIUS Act

The STABLE Act and the GENIUS Act passed out of their respective committees. Now, attention turns to how the House and Senate will move forward with the two stablecoin framework bills. Each chamber must hold debates and then vote on the proposals before proceeding.

Reporter Eleanor Terrett posted on X that two unnamed crypto lobbyists believe a behind-the-scenes effort is underway to align both bills. She wrote,

“There is likely to be a coordinated push behind the scenes over the next few weeks to get the two bills to mirror each other, as there are still some differences between them.”

According to Terrett, aligning the STABLE Act and GENIUS Act now could help avoid the need for a conference committee later. These committees are formed when the House and Senate pass different versions of the bill. Members from both chambers must negotiate a unified version before the legislation can be finalized and enacted.

The process will move faster if lawmakers align both versions before the floor votes. This strategy reduces procedural delays and could simplify the legislative path for regulating payment stablecoins under a consistent federal framework.

The update also noted that the House is shifting focus to broader market structure legislation, with the next hearing scheduled for Wednesday, Apr. 9. The STABLE Act and GENIUS Act will likely remain central topics in those discussions, especially as the debate on stablecoin regulation continues to evolve.