The United States has officially passed the STABLE Act, setting regulatory guidelines for all USD-pegged stablecoins, including Tether (USDT) and Circle (USDC). Marking a significant milestone for the U.S. stablecoin industry, the legislation was approved by the House Financial Services Committee with a 32-17 vote, bringing much-needed clarity to the digital asset sector.
STABLE Act Passes Committee with 32-17 Vote
After a 13-hour-long discussion, Financial Services Committee Chair Rep. French Hill and Subcommittee Chair Rep. Bryan steil announced their decision to pass the much-awaited stablecoin legislation.
The STABLE Act seeks to provide a comprehensive regulation for stablecoin payments to function freely in the US financial system. It would create a regulatory framework specifically designed for USD-pegged stablecoins while maintaining an effective balance between technological innovation and consumer protection. Key provisions of the STABLE Act include:
- Establishing a formal regulatory structure for payment stablecoins.
- Creating strong consumer safeguards while allowing for continued innovation.
- Positioning the United States to maintain leadership in digital asset development.
- Providing clear regulatory parameters for industry participants.
- Modernizing the U.S. payment infrastructure.
Ensuring USD Dominance In Global Finance
Previously, US President Donald Trump stated that stablecoins are important to the US economy and would help maintain the dominance of the US Dollar in the global market. Speaking on the development, Congressman Dan Meuser stated:
“The STABLE Act reinforces the U.S. dollar’s status as the world’s reserve currency by ensuring stablecoins operate within a secure, dollar-backed framework, in America. It will make payments faster, cheaper, and more accessible, reducing costs to the benefit of businesses and consumers alike”.
The announcement comes at a time when President Donald Trump announced reciprocal tariffs while triggering strong volatility in global markets.
US Banks Race Up for Stablecoin Launches
Traditional US banks are once again joining the stablecoin bandwagon, showing growing interest in the USD-pegged digital assets.
Global banks and fintech firms are also introducing their own stablecoins, leveraging growing adoption and supportive regulations. Adding to a roster of payment providers like Standard Chartered, PayPal, and Revolut, Bank of America (BoA) is now exploring the possibility of launching its own stablecoin.
Similarly, two weeks ago, Custodia Bank and Vantage Bank have made history by launching the first U.S. bank-issued stablecoin on a permissionless blockchain. Named Avit, the stablecoin was issued, transferred, and redeemed on the Ethereum network.
Bhushan akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/us-passes-the-stable-act-for-usd-stablecoins-tether-circle-other-to-benefit/
✓ Share: