The STABLE Act, identified as regulatory proposal HR 2932, is advancing in Congress with a bipartisan vote, providing a key regulatory framework for stablecoins in the United States.
On Wednesday, April 2, the United States House Committee on Financial Services passed the Stablecoin Transparency and Accountability for a Better Ledger Economy Act, also known as the STABLE Act, with a vote of 32 in favor and 17 against.
The STABLE Act is a regulatory project that seeks to oversee the growing stablecoin market, so its passage represents an important milestone in the cryptocurrency industry.
TRADE WITH STABLECOINSNow, following its committee approval, the bill heads to the House floor, where it must obtain majority support to advance to the Senate. In the Senate, the proposal will be reviewed by relevant committees before being voted on in the full House. If the bill passes without amendments, it will be sent to U.S. President Donald Trump for his signature or veto.
The legislative process towards the implementation of the STABLE Act
The passage of the STABLE Act in the Financial Services Committee marks the beginning of a legislative process that must go through several stages before becoming law. First, the proposal will be introduced in the House plenary session, where it will need a simple majority to move forward. If it passes this step, it will be sent to the Senate for consideration.
Then, in the Senate, the STABLE Act will follow a similar process, being reviewed by the relevant committees. If both chambers pass identical versions, the bill will be sent directly to the president. However, if there are discrepancies between the House and Senate versions, a conference committee will be formed to reconcile the differences and develop a final, agreed-upon text. This legislative process ensures that all key concerns are addressed before the bill reaches the president's desk.
LINK CARD AND EARNOnce the STABLE Act is passed, it will have a significant impact on the cryptocurrency industry. It should not be forgotten that this regulatory project is designed to establish Clear rules for stablecoin issuers in the country, ensuring that these tokens are backed by secure and liquid assets, and that consumers have access to clear information about their use and support.
The importance of this bill lies in its focus on ensuring transparency and security in the stablecoin sector, which have become essential to the cryptocurrency ecosystem. At the same time, the STABLE Act aligns with the broader goals of the current Donald Trump administration regarding the promotion of cryptocurrencies and the blockchain industry.
BUY USDC HEREWhat is the STABLE Law?
The STABLE Act focuses on improving transparency and security in the stablecoin sector. Key provisions include requiring issuers of these digital assets to maintain reserves equivalent to the tokens in circulation, ensuring that users can redeem their stablecoins at any time without delay or risk. Furthermore, the law requires that these reserves be composed of high-quality assets, such as U.S. Treasury bonds or other financial instruments overseen by federal or state regulators.
Another important provision in the STABLE Act is the prohibition of riskier rehypothecation practices. This means that issuers will not be able to use the underlying assets for investments or loans, which will reduce systemic risks and protect consumers from potential bankruptcies or malpractice.
The law in question also promotes transparency, requiring issuers to publicly disclose the composition of their reserves. This ensures a high level of transparency that will contribute to building greater trust in the sector, which is essential for the large-scale adoption of these digital currencies.
Certificate
Main Cryptocurrencies Course
Basic levelBit2Me Academy brings you a new course in which you will learn everything you need about the most important cryptocurrencies that exist today.
A complement to US regulatory initiatives
In addition to the STABLE Act, The Senate is also moving forward with passing the Guiding and Establishing National Innovation for US Stablecoins Act, known as GENIUS ActBoth regulatory proposals share similar goals, such as ensuring financial stability and promoting innovation in the country's stablecoin sector. However, as this outlet has reported, there are differences in some details, such as state and federal regulation, as well as permitting.
The GENIUS Act, introduced by Senator Bill Hagerty, sets strict rules for stablecoin issuers. It requires them to be classified as financial institutions under the Bank Secrecy Act and maintain one-to-one reserves. It also prohibits private issuers from using the backing assets for activities other than backing stablecoins, which will reduce risks for consumers.
Therefore, The complementarity between the STABLE and GENIUS Acts strengthens the regulatory framework for stablecoins.Both laws seek to provide certainty to the industry while fostering innovation and growth. This will benefit not only issuers but also consumers, offering them more secure and transparent products.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
