- U.S. House passes STABLE Act, aiming for more stablecoin transparency and regulation.
- Tether CEO envisions a “stablecoin multiverse,” predicting global adoption of digital assets.
The U.S. House Financial Services Committee has moved forward with a Republican-backed stablecoin regulation bill.
It has passed the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act by a 32-17 vote on 2nd April.
Source: Financial Services GOP/X
How will this bill benefit the stablecoin market?
The bill, which is now set for a full House vote, aims to bring more transparency and accountability to the growing stablecoin market.
Introduced earlier this year by Committee Chair French Hill and Bryan Steil, Chair of the Digital Assets Subcommittee, the STABLE Act has drawn notable support from Tether, the world’s largest stablecoin issuer.
This marks another effort by the committee to regulate stablecoins after a similar bill in 2023 faltered amid political disagreements, with Republicans blaming the Biden administration for the legislative standstill.
During discussions on the 2nd of April, several amendments were proposed focusing on President Donald Trump’s connections to the crypto industry, bailout provisions, and the regulation of foreign issuers.
As the bills progress, both the Senate and House must reconcile their differing approaches—particularly on how state and federal regulations will govern issuers and how foreign entities like Tether will be handled.
Not everyone voted for the bill
However, not all were in favor of the bill.
Maxine Waters, the top Democrat on the House Financial Services Committee, swiftly voiced her opposition to the bill, raising concerns about Trump’s involvement in the crypto space.
Waters said,
“With this stablecoin bill, this committee is setting an unacceptable and dangerous precedent, validating the president and his insiders’ efforts to write rules of the road that will enrich themselves at the expense of everyone else.”
How is it different from the EU and UK’s stablecoin regulation?
Thus, as the stablecoin market continues to grow in complexity and size, financial institutions across the UK and EU are increasingly exploring ways to integrate these assets into their operations, whether for treasury management, payments, settlement, or client services.
Recent regulatory actions, such as the EU’s MiCAR and the UK government’s proposed digital assets regime, highlight a strengthened focus on ensuring that stablecoins, like all digital assets, are subject to comprehensive regulatory safeguards.
In late 2023, both HM Treasury and the UK Financial Conduct Authority (FCA) outlined their regulatory frameworks for stablecoin issuance and custody, with the FCA also planning to release a consultation paper on stablecoin backing assets and redemption processes in the first half of 2024.
What’s more?
Amid this, Tether CEO Paolo Ardoino has also outlined an ambitious vision for the future of digital assets, which he refers to as the “stablecoin multiverse.”
Ardoino highlighted the growing significance of stablecoins in the global financial landscape, forecasting their widespread adoption by both private companies and government institutions.
Therefore, as stablecoins continue to evolve, their integration into traditional financial systems could play a pivotal role in shaping the future of digital finance.
