House Introduces Revised STABLE Act with New Rules for Stablecoin Issuers

Highlights:

• The updated bill will set clear rules for the stablecoin industry in the growing market.
• The bill requires monthly reserve evidence and will impose penalties for false financial reports.
• Lawmakers are aiming to finalize stablecoin rules for the industry by August.

The U.S. House of Representatives introduced a revised version of the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act on March 26. This updated bill significantly modifies the initial draft released on February 5. The legislation seeks to set clear rules for companies issuing payment stablecoins and introduces stricter compliance measures. It also expands oversight powers and clarifies important definitions related to the use of dollar-backed digital assets.

Representatives Bryan Steil and French Hill formally introduced the bill to create a framework for issuing payment stablecoins. The revised version includes new provisions that distinguish between different types of issuers. Nonbank entities approved by the Comptroller and state-regulated entities operating pursuant to certified frameworks are now included in a separate category. These changes provide clearer rules for issuers and consistent treatment under the law.

The most notable change is the exclusion of certain financial products from the definition of payment stablecoin. Securities, deposits, and credit union accounts do not fall under this category, giving developers and financial institutions more certainty regarding compliance. This change removes ambiguity and makes it easier to understand what qualifies as a payment stablecoin under the proposed law.

New Compliance Measures and Oversight Provisions

The revised STABLE Act lays out new requirements in areas such as stablecoin reserves and financial reporting. Now, issuers have to attest to monthly reserves verified by registered public accounting firms. Moreover, these reports must be certified as accurate by a chief executive or financial officer. Filing false information knowingly could result in criminal penalties, such as fines up to $1 million and imprisonment for up to 10 years. The February version of the bill had no such certification provisions.

The updated bill also includes specific procedures for approving new stablecoin issuers. It sets specific deadlines for decision-making by federal authorities, offers formal appeal rights, and allows rejected applicants to reapply. To increase transparency, the bill requires agencies to submit annual reports to Congress detailing the status of pending applications and decisions made on issuer approvals.

The other key element of the updated bill lies in strict reserve standards. To issue a stablecoin, its issuer must fully back it with cash equivalent assets like Treasury bills and demand deposits. The issuers of such tokens cannot pay interest or yield to the token holders to prevent financial instability. The bill allows them to engage only in essential functions such as issuance, redemption, and custody services.

The new provision requires federal agencies to start making the rules within 180 days after the bill is enacted. These rules will set application requirements and a streamlined approval process for well-capitalized issuers. Another important clarification states that issuers operating on decentralized public networks cannot be denied approval based on that fact alone. This gives assurances for developers building blockchain-based payment systems.

Next Steps for the Bill and Broader Crypto Efforts

The markup process is expected to begin in the coming days in the House Financial Services Committee. Markup is conducted by committee members, who review the legislation, allow for amendments, and speak to the important provisions before moving the bill to a full vote. Representative Bill Huizenga had high praise for the bill, saying stablecoins could improve payment systems and help modernize how money is exchanged.

Stablecoins have the potential to simplify our payment systems and revolutionize the way we move money. I’m proud to be an original cosponsor of this bipartisan bill with @RepBryanSteil and @RepFrenchHill and look forward to next week’s markup. https://t.co/fVZjgvK0l8

— Rep. Bill Huizenga (@RepHuizenga) March 26, 2025

The Senate Banking Committee has already approved its own version of the bill, which now awaits a vote on the Senate floor. Representative Tom Emmer expressed confidence that any differences between the House and Senate versions could be resolved. He also reintroduced the Securities Clarity Act, a separate bill that aims to define how crypto assets fit within existing financial laws.

You can read more about our bipartisan Securities Clarity Act here: https://t.co/CZEQQ5H4UX

— Tom Emmer (@GOPMajorityWhip) March 26, 2025

Lawmakers were aiming at completing stablecoin rules by August. The Senate also recently voted to undo an Internal Revenue Service rule on decentralized finance brokers. Previously, the Congressional Review Act resolution passed in both chambers, but procedural rules on tax-related matters required it to pass a second Senate vote. The measure passed with 70 yes votes and 28 no.

🚨 BREAKING: The Senate just voted 70-28 to repeal the IRS DeFi broker rule! This moves to @realDonaldTrump’s desk for final approval. A massive step forward for crypto innovation and decentralization. 🌍💸 #DeFiWins #CryptoRegulation

— EcoVitality Alliance (@EcoVitalityEVA) March 27, 2025