U.S. House Financial Services Committee chairman release a draft to establish a regulatory framework for stablecoins

French Hill, the U.S. House Financial Services Committee Chair, and Bryan Steil, the Digital Assets Subcommittee Chair, released a discussion draft of a bill to regulate stablecoins. 

The proposed Stable Act of 2025 will impose a two-year ban on stablecoins solely backed by self-issued digital assets. The bill also mandates a Treasury study on the risks relating to stablecoin issuance and implementation.

Chairman Hill stated that the discussion draft will build upon previous work on digital assets in the last Congress to provide clarity for stablecoins by ensuring a federal and state path for stablecoin issuers. He added that he will collaborate with Subcommittee Chair Steil to receive public feedback and work with Trump’s administration, the Senate, and the House to ‘get it right’ and deliver a dollar-backed stablecoin for the American people.

Bill enhances transaction efficiency, driving demand for U.S. Treasuries

Chairman Steil said that by implementing a clear regulatory structure for stablecoins, the U.S. could support continued innovation and boost the U.S. dollar’s position as the world’s reserve currency. He added that this would also protect investors and consumers. Steil said he was looking forward to getting feedback from consumers, issuers, and stakeholders on the draft legislation as the U.S. worked to provide clear ‘rules of the road’ for this innovative technology.

According to Senate Banking Committee Chair Tim Scott (R-SC), creating a regulatory framework for stablecoins was critical to ensuring the industry could innovate and grow in the United States. Scott said he looked forward to working with Chairman Hill and the House to advance the solution to Trump’s desk, as this would also facilitate financial inclusion. 

“From enhancing transaction efficiency to driving demand for U.S. Treasuries, the potential benefits of strong stablecoin innovation are immense. We need legislation that establishes a safe and pro-growth regulatory framework that will unleash innovation and advance the President’s mission to make America the world capital of crypto.”

-Senator Bill Hagerty (R-TN)

Senator Cynthia Lummis said she was committed to working with ‘friends’ in the House to pass bipartisan stablecoin legislation that protected the U.S. dual banking system. 

Proposed Stablecoins Act builds on the former HFSC Chair’s efforts

According to the HFSC, the Stable Act of 2025 builds on the efforts of former House Financial Services Committee Chair Patrick McHenry to provide multiple pathways for U.S. stablecoin issuers. The discussion draft was sent to the Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence hearing: “A Golden Age of Digital Assets: Charting a Path Forward.” The HFSC further confirmed that it had successfully passed the Clarity for Payment Stablecoin Act with bipartisan support in the last Congress.

As per the HFSC, there were key differences between the former Chair’s Clarity for Payment Stablecoin Act of 2023 and the Stable Act of 2025. The Stable Act gave the OCC the authority to approve and supervise federally qualified nonbank stablecoin issuers. On the other hand, the Clarity for Payment Stablecoin Act of 2023 included a federal pathway at the Federal Reserve for stablecoin issuers. 

The HFSC said that both the approaches in the Stable Act and the Genius Act represented an effort by Republicans to provide the protection and transparency expected by consumers. The two Acts also provided for federal and state pathways for stablecoin issuance while securing the U.S. as the global leader in digital finance.

Following the announcement of the Bicameral Working Group on Digital Assets, the Committee under the leadership of Hill and Steil will ‘pick up the torch in a bicameral fashion’ together with Chairman Scott, Sen. Hagerty, and Sen. Lummis to pass federal stablecoin legislation and send it to Trump’s desk.

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