American legislators are getting closer to defining a national regulation framework for stablecoins, with a large stablecoin account that improves in the congress.
On 2 April, the House Financial Services Committee approved the Stable Act of 2025 (HR 2392), an important piece of legislation that outlines regulatory standards for Dollar-Pegged Stablecoins. The bill went against and 17 with 32 members.
If signed in the law, the bill would lay down clear rules for the issuing and managing dollar-supported Stablecoins. It would include reserve requirements and anti-money laundering practices to protect consumers and at the same time promote responsible innovation in the financial sector.
Proponents of the stable law are of the opinion that it provides long-awaited clarity for Stablecoin-emission. They claim that a standardized framework would reduce the uncertainty of the regulations and strengthen the position of the US in the developing digital assets space.
Democrats increase criticism
Despite the progress of the bill, it has had to do with sharp criticism from various democratic legislators.
In the run-up to the vote, Democrats proposed changes to block government officials, including the president, to keep financial interests in Stablecoin-related companies. The proposals have not been accepted.
Representative Maxine Waters, the committee’s ranking, criticized the bill and called it a ‘dangerous precedent’. She claimed that President Donald Trump could benefit by freeing the way for a family-Lied Stablecoin to be used in federal transactions.
Waters warned:
“This committee inserts an unacceptable and dangerous precedent that the president and efforts of his insiders to write the road rules that will enrich themselves at the expense of all others, validate.”
Representative Nydia Velazquez echoed these concerns, pointing to continuous conflicts of interest associated with the connections of the Trump government with the crypto industry.
She explained:
“The Trump government is plagued by conflicts of interest and profitable, especially among those connected to crypto. President Trump’s and co-president Elon Musk ‘Doge’ is a reference to a memecoin that Musk has long promoted on social media.”
Representative Sylvia Garcia also said:
“Republicans can quickly follow a stablecoin account with which Donald Trump, his family and Elon Musk are able to come up with shadow in shady crypto-schemes all while Trump is in the Oval Office. No rules. No responsibility. No responsibility. Simply take advantage of the back of the daily investors and tax patches.”
Despite the criticism, the Republican Committee Chairman French Hill defended the legislation. He emphasized the importance of encouraging innovation and maintaining American leadership in global finances.
Hill stated that policy for digital assets should give priority to competition and development of the private sector.