The STABLE Act Moves Forward in Markup Hearing

The Stable Act, legislation designed to clarify the issuance of stablecoins, is in markup today as the House Financial Services Committee seeks to move the bill towards approval. The legislation is bipartisan, having been sponsored by both Republicans and Democrats, including Representatives Hill, Torres, Emmer, Huizenga, Meuser, Kim, Downing, Moore, Gottheimer, Haridopolos, and Liccardo. A discussion draft of the bill was introduced in February, so the language has had a good, long time to circulate amongst members.

Chairman of the House Financial Services Committee, French Hill, introduced the legislation today, stating:

“Payment stablecoins present a new and flexible payment innovation. This largely frictionless finance will simplify the ability to move money around the world in an instant. But, as with all new technologies, new and different risks can emerge. In this Committee, we have openly discussed the potential risks surrounding digital assets. Members in this room – on both sides of the aisle – have spent years collaborating on stablecoin legislation, including under the leadership of Ranking Member Waters. We’ve all come to an important conclusion: Innovation needs guardrails, not roadblocks.”

Hill said that for stablecoins to achieve their full potential, a federal framework is needed.

Stablecoins typically are digital assets tied to another asset, like fiat currency. While affiliated with the crypto sector, stablecoins may be viewed as updated payment rails that are faster, less expensive, and globally available. Supporters note that effective stablecoin legislation can support the US dollar as the world’s reserve currency.

Other bills are also on the docket today. These include:

 

 



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