On April 2, the US House Financial Services Committee passed the STABLE Act, which now needs to pass a full House vote and then a Senate vote in its next stages of approval into law.
The Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act was passed with a 32 to 17 vote.
The legislation, formally titled the “Stablecoin Tethering and Bank Licensing Enforcement” Act, was introduced in 2020 and failed to pass . It originally aimed to regulate stablecoin issuers by requiring them to obtain banking charters and follow traditional banking regulations.
Stablecoin Regulations Move Forward
The current STABLE Act, introduced again in its amended form in March, differs slightly from a similar bill introduced in 2023.
It gives the Office of the Comptroller of the Currency (OCC) “the authority to approve and supervise federally qualified nonbank payment stablecoin issuers,” according to Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee Chair Bryan Steil.
“The STABLE Act protects consumers while cementing the US Dollar as the world’s reserve currency and promoting the next generation of Web3 businesses here in the United States,” said Steil.
“I am happy to support the STABLE Act and continue the House Committee on Financial Services’ work to advance stablecoin regulation that protects a robust state pathway,” said Republican Representative Mike Flood.
“Stablecoins can not only help Americans grow their wealth but also promote U.S. values and leadership both here at home and around the world,” added California Representative Young Kim.
Meanwhile, Congressman Dan Meuser said the legislation will “make payments faster, cheaper, and more accessible, reducing costs to the benefit of businesses and consumers alike.”
Other stablecoin-related bills are also going through the Congressional voting process, including the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which defines reserve rules for stablecoin issuers.
Stablecoin Ecosystem Outlook
The stablecoin ecosystem is currently dominated by two players: Tether, which has a 60% market share with $144 billion USDT in circulation, and Circle, with a 25% share and $60 billion USDC circulating.
USDS, formerly known as Maker’s DAI, is the third-largest stablecoin with $8 billion in circulation and a 3.4% market share.
Earlier this week, Circle filed for a long-awaited initial public offering with the US Securities and Exchange Commission.
Meanwhile, Binance has delisted several stablecoins, including USDT, DAI, and TUSD, in European markets to comply with stringent MiCA regulations.
