- Digital Assets and AI Subcommittee Chairman Bryan Steil and the House Financial Services Committee Chairman French Hill introduced the STABLE Act bill.
- The bill aims to regularize the issuance and operation of payment stablecoins in the US.
Regulation is a must for any fintech industry to grow and thrive in today’s financial ecosystem. Without clear rules and regulations in place, businesses, individuals, and investors will not be able to use new financial assets.
Despite the lack of clear regulations, the crypto industry has grown to be a multi-trillion-dollar industry. Thus, the industry is too vast and too deep to be ignored by governments and officials. With a focus on technological innovation, Donald Trump promised to make the US a crypto capital of the globe. To fulfill his promise, Trump has taken several initiatives to improve crypto regulation and adoption.
A Bitcoin strategic reserve and stablecoin regulation are the two major areas of focus for Trump’s presidency. The Presidential Working Group is evaluating the accretion of a crypto reserve, and several state officials are proposing to create a Bitcoin reserve to tackle the decreasing economic value of fiat currencies.
Meanwhile, stablecoin regulation is also on the table with top government officials supporting them several times in the media. White House Crypto & AI Czar David Sacks opined that stablecoins could increase global dollar dominance and support the US Treasury by decreasing debt.
STABLE Act Bill to Regulate Dollar-Denominated Stablecoins in the US
Bryan Steil and French Hill introduced the Stablecoin Transparency and Accountability for a Better Ledger Economy, which is the STABLE Act bill, yesterday. While Steil is the digital assets, fintech, and AI subcommittee chairman, Hill is the chairman of the house financial services committee.
The bill focuses on establishing a clear regulatory framework for dollar-denominated stablecoins in the country. Its draft was initially introduced in February, and several members and stakeholders revised it to prepare the current final bill. Referring to it, digital asset committee vice chairman Tom Emmer said,
“With the STABLE Act, the United States will lead in modernizing the global financial system. I’m beyond proud to support this legislative effort, and I thank Representatives Hill and Steil for their leadership.”
President Trump has reiterated the importance of regularizing stablecoins during his recent speech. His firm belief in stablecoin’s potential to increase dollar dominance is the major push behind the STABLE Act bill.
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