The U.S. House Financial Services Committee has pushed forward the STABLE Act, a major step toward stablecoin regulations. While the bill gained bipartisan support, Democrats are raising red flags over Donald Trump’s involvement with World Liberty Financial (WLFI) and its USD1 stablecoin.
The House Financial Services Committee has recently taken a significant step in regulating stablecoins, passing the STABLE Act with a 32-17 vote. The bill, introduced by Chair French Hill and Rep. Bryan Steil, aims to establish a clear framework for dollar-backed stablecoins, enforcing reserve requirements and anti-money laundering standards. Moreover, lawmakers stressed the importance of keeping pace with blockchain technology to maintain global competitiveness.
Trump’s Crypto Connection Sparks Debate
The STABLE Act advanced after an intense markup session, with 26 Republicans and six Democrats voting in favor. However, many Democrats expressed concern about Trump’s deep ties to stablecoins, especially after his affiliated firm, World Liberty Financial (WLFI), announced its own stablecoin (USD1). Given Trump’s history of selling NFTs and memecoins like TRUMP, they argue he could directly benefit from the regulations he may influence as president.
Republican Push for Quick Action
Despite the controversy, Republicans are pushing to finalize stablecoin regulations by August. Committee Chairman French Hill emphasized the need for “guardrails, not roadblocks” to bring innovation. Democrats, including Maxine Waters and Stephen Lynch, countered by accusing Trump of using his presidential influence for personal gain, a charge Republicans brushed off as unnecessary.
Stablecoins, CBDC Ban, and More
This wasn’t the only crypto-related debate in Congress. Alongside the stablecoin bill, lawmakers discussed banning a U.S. central bank digital currency (CBDC) and establishing a task force to combat illicit crypto activities. The Financial Technology Protection Act, aimed at tackling crypto crime, passed unanimously, while the anti-CBDC bill saw a split vote of 27-22.
With the House and Senate both advancing stablecoin bills, lawmakers will now work on merging them into a single version for final approval. Meanwhile, Trump is expected to sign a resolution that overturns an IRS rule targeting DeFi, marking another win for the crypto industry. Whether stablecoin regulations will pass before the elections and what role Trump will play remains to be seen.
Reacting to the news, Coinbase CEO Brian Armstrong argues it would push innovation forward and keep the industry in the U.S., while lawmakers like Rep. French Hill say there’s already a long-standing consensus against it. Meanwhile, discussions on broader crypto regulations are moving forward, with Rep. Bryan Steil calling stablecoin and market structure bills “peanut butter and jelly” essential together. As the STABLE Act heads for debate, Circle’s Dante Disparte is pushing for quick approval, especially as Circle just filed for its IPO.
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