STABLE Act Advances to Full House Vote After 32-17 Approval in Committee

Highlights:

• The STABLE Act has passed the House Financial Services Committee after an intense debate.
• Legislators are worried that the involvement of the Trump family in the stablecoin business could influence the bill.
• The STABLE Act will move to the full House for a vote and then to the Senate.

The STABLE Act has passed the House Financial Services Committee by a vote of 32 to 17 and will now go to the House floor for consideration. The legislation, which aims to put clear guidelines in place for U.S. dollar-backed stablecoins, took lawmakers hours to debate the details and approve. The bill, if approved, will force issuers to reveal information about their business operations and the assets that back their token. The bill comes at a time when stablecoins are increasingly being used in digital payments and financial markets.

H.R. 2392, the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act of 2025 passed Committee 32-17. pic.twitter.com/pvzTOfTTr1

— Financial Services GOP (@FinancialCmte) April 3, 2025

The STABLE Act presents specific conditions for the issuance of stablecoins that focus on consumer protection and financial transparency. Proponents of the bill think that it will keep the US dollar strong in global finance. In addition, it will help prevent the risks associated with unregulated digital assets.

However, some lawmakers are raising concerns that some provisions of the bill might hurt innovation in the industry. In spite of the debates, the committee passed the bill. The move is a big step toward deciding the future of stablecoins in the United States.

Concerns Over Trump-Linked Stablecoin

During the debate, lawmakers heavily focused on a stablecoin project linked to the family of President Donald Trump instead of the bill. USD1, a new stablecoin, was launched by World Liberty Financial, a company linked to the Trump family. The controversy arose when some legislators asked whether government officials and their families should be directly involved in digital asset businesses.

Some Democratic lawmakers have sought to introduce amendments to the bill. The amendments seek to limit potential conflicts of interest. They suggested a ban on federal officials and their families issuing or promoting stablecoins. Some lawmakers are worried that privately issued stablecoins would be able to secure government-backed bailouts if they ran into financial trouble.

Representative Stephen Lynch pointed out that a president with financial stakes in a stablecoin business could authorize taxpayer funds to support the asset in times of crisis. In his view, the move could create ethical concerns.

🚨NEW: In the House markup of the STABLE Act, @RepStephenLynch says it’s a “certainty” that these stablecoins (referencing the one launched by @worldlibertyfi) are going to “depeg and need a bailout.”

“The American taxpayer will be the ultimate loser here,” he said, adding that…

— Eleanor Terrett (@EleanorTerrett) April 2, 2025

Representative Brad Sherman also introduced an amendment that would prevent bailouts for failing stablecoins. In his view, stablecoin issuers should bear the responsibility for their financial stability rather than fall back on government intervention. However, supporters of the bill said that the current framework does not give special benefits to any one entity and affords equal treatment to all issuers. Following a lengthy debate, the committee decided to proceed as planned with the bill without further amendments.

What Happens Next?

The STABLE Act now heads to the full House with the committee’s approval. The bill will then go to the Senate for further discussions and possible modifications if it passes. The role of state-regulated stablecoins and the scope of issuer liability are among aspects of the bill lawmakers from both parties will continue to debate.

Some legislators remain split over whether businesses should have the ability to issue stablecoin without more restrictions. Concerns have emerged that large corporations like Meta or X will enter the market. They believe that new amendments should be introduced to separate stablecoin issuers from commercial enterprises. This issue could still be clarified in the final version of the bill before reaching the President’s desk.