The U.S. House Financial Services Committee has approved the STABLE Act, aiming to regulate stablecoins such as Tether (USDT) and Circle’s USDC. Passed with a 32-17 vote, the bill mandates that stablecoins be backed one-to-one by U.S. dollars or short-term government debt, intending to enhance stability and consumer protection in the digital asset market. Chairman French Hill emphasized the need for regulatory frameworks to support innovation.

The STABLE Act requires issuers to maintain approved reserves, impacting firms like Tether, which has faced scrutiny over reserve transparency. This regulation could increase institutional trust and promote stablecoin integration into the U.S. economy. Lawmakers argue that stablecoins may bolster the U.S. dollar's global dominance by ensuring these digital assets remain linked to traditional financial systems.

Political tensions persist, with concerns about conflicts of interest, notably from Democrat Maxine Waters. Despite this, the bill represents a bipartisan effort to formalize crypto regulations. The Senate is concurrently developing the GENIUS Act, which may align with the STABLE Act to establish a unified regulatory framework. This could significantly influence stablecoin operations in the U.S. and set a precedent for global regulatory approaches.