While a draft version of the Stable Act has been in circulation for some time now, the House Financial Services Committee has officially introduced the legislation, which aims to enable a regulated environment for the issuance of stablecoins. While many global jurisdictions are pursuing CBDCs or Central Bank Digital Currency, the US is on a different path due to profound privacy concerns. A privately issued stablecoin can be issued that aims to ensure privacy. At the same time, a CBDC may be too tempting for a government intent on using the technology for control or observation.
The Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act has been introduced by Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee Chairman Bryan Steil and House Financial Services Committee Chairman French Hill.
The legislation has garnered bipartisan support as Democrats have recognized the need for new rules for stablecoins, which are effectively a new method of payments that seeks to be faster, cheaper, and more secure. Congress expects to have a bill on the President’s desk before August, which will probably be signed into law.
Representative Hill said the legislation is a continuation of their digital asset work from the previous Congress, and markup is expected next week.
Representative Steil commented:
“It’s the Golden Age of digital assets in America. With the STABLE Act, we will secure the future of financial payments and the continued dominance of the U.S. dollar as the world’s reserve currency. This bill is the result of extensive collaboration with committee members, stakeholders, and the Administration. I look forward to passing this bill and implementing a clear regulatory structure for payment stablecoins.”
House Majority Whip and Digital Assets Subcommittee Vice Chairman Tom Emmer said the Stable Act will help the United States the modernizatin of financial services.
Representative Ritchie Torres, a Democrat supporting the legislation, said stablecoins represent the next frontier in Fintech.
“I’m proud to join my colleagues in advancing bipartisan legislation that strengthens U.S. leadership in the digital economy and protects consumers in the process.”
While similar legislation was pursued last Congress, the Democrat-controlled Senate was certain to block digital asset legislation. Now that the Senate and White House are controlled by Republicans, it is almost certain the bill will soon become law.