US House Financial Services Committee voted 32-17 to advance a bill aimed at regulating stablecoins. A handful of Democrats joined Republicans in favor of the measure, reflecting one of the few areas of bipartisan agreement.
The bill proposes that stablecoins be backed one-to-one by assets like US dollars or short-term government debt under state or federal oversight. Republicans and some Democrats see stablecoins as an innovative way to offer faster and cheaper transactions than conventional banking networks. They view a federal regulatory structure as the best way to protect consumers while encouraging cryptocurrency businesses to remain in the United States.
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 committee rejected proposals from its top Democrat to ban Trump, his family, and technology companies from creating their own stablecoins. Those provisions included a measure preventing taxpayer bailouts of failing stablecoin ventures, which also did not pass.
Chairman French Hill of Arkansas opened the meeting by stating, “Innovation needs guardrails, not roadblocks.” Hill and fellow supporters see stablecoins as a chance to modernize cross-border payments and reduce reliance on bank-based systems. The House bill shares many similarities with a version passed last month by the Senate Banking Committee, and lawmakers say they hope to reconcile any differences soon so it can proceed to Trump’s desk.
One dispute is whether to allow algorithmic stablecoins, which do not hold a reserve in a recognized currency like the dollar. Another question is how regulators should handle federal or state permitting, with representatives preferring a more flexible approach. Most supporters want to ensure stable coins meet guidelines for safety and soundness.
Maxine Waters advocated against Trump’s family owning stablecoin companies
Top Democrat Maxine Waters of California criticized the committee’s decision to drop her amendment barring Trump and his relatives from owning stablecoin ventures. According to Waters, Trump “leveraged the presidency to establish multiple crypto schemes to enrich himself and his family.”
She cited World Liberty Financial, a family crypto firm that plans to issue its own stablecoin. Waters argued the bill’s absence of conflict-of-interest rules benefits Trump, Elon Musk, Commerce Secretary Howard Lutnick, and large technology corporations like Amazon, Meta, and Walmart.
Despite these objections, Representative Gregory Meeks of New York, a senior Democrat, voted in support of the legislation. Meeks emphasized the importance of “certainty” for the expanding cryptocurrency sector, even while expressing reservations about Trump’s involvement.
The banking community, meanwhile, has voiced worry that stable coins could drain deposits from traditional banks and curtail access to loans, while a major retail lobby backs the legislation as a potential competitor to more payment systems such as credit cards.
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