A stablecoin bill proposed by the Republican Party is causing fierce debate between the two factions in the US Congress. While the Republican Party argues that this is a necessary step to promote the development of stablecoin and maintain the USD's position in the global financial market, the Democratic Party strongly criticizes it, claiming that this bill will grant excessive power to major tech companies like Elon Musk's X and could harm retail investors as well as national security.
The Stablecoin Bill – Progress or Danger?
The new bill, called the Stable Act, is described by the Democratic Party as 'breaking down the wall between banking and commerce.' According to Congresswoman Maxine Waters, the Democratic leader on the House Financial Services Committee, removing this barrier would allow major tech companies to issue their own currency, similar to how #Facebook attempted with Libra previously.
Libra was once one of the most ambitious stablecoin projects by Facebook (now Meta), but it collapsed due to strong opposition from lawmakers and financial regulators. Ultimately, Facebook sold the project to Silvergate Bank, which later went bankrupt in 2023.
Currently, with the strong development of the stablecoin market, companies like Elon Musk's X or Apple could easily become major stablecoin issuers if the bill is passed. This raises concerns among many Democratic lawmakers about the dominance of Big Tech in the new financial ecosystem.
Concerns About the 'Race to the Bottom' in Stablecoin Regulation
One of the most controversial points in the bill is allowing stablecoin issuers to operate primarily under the oversight of individual states rather than the federal government.
Congressman Stephen Lynch (Massachusetts) warns that this will lead to a race to the bottom in regulation, where states compete to attract stablecoin companies by loosening oversight standards. This could create a less safe legal environment, affecting users and investors.
Republican Party Response: Stablecoin is Beneficial for the US Economy
Despite the opposition from the Democratic Party, the Republican Party, with control over both the House and Senate, could still pass this bill without the need for consensus from the opposition.
President Donald Trump has also expressed strong support for the crypto industry and has previously pledged to bring 'regulatory clarity' to this market. In January 2025, Trump even released his own meme coin, showing his growing interest in digital assets.
Congressman Andy Ogles (#Tennessee ) argues that stablecoin not only facilitates faster and cheaper transactions but also strengthens the power of the USD in the international market. He warns about the risk of other countries issuing stablecoins based on the Chinese Yuan (CNY) or the Russian Ruble (RUB), which could undermine the US's position in the global financial market.
CBDC – Another Battle Between Two Factions
Not only stablecoin, another controversial issue is central bank digital currency (CBDC).
Last week, Republican Congressman Tom Emmer (#Minnesota ) proposed a bill banning the issuance of CBDC, calling it an 'Orwellian surveillance tool,' alluding to the government's potential to use CBDC to monitor and control citizens' finances.
However, Congressman Brad Sherman (California) from the Democratic Party argues that CBDC is a public alternative to private stablecoins and that if banned, only crypto companies will benefit.
"The only point of these coins," Sherman declared, "is for crypto bros to make money off them."
Conclusion: Who Will Control Digital Money?
This stablecoin bill shows a clear divide between the two parties regarding the future of cryptocurrency in the US. The Republican Party wants to promote stablecoin as an innovative financial tool, while the Democratic Party fears it will empower major tech corporations like Elon Musk's X or Meta.
In the context of the Trump administration reorienting its crypto policy, the question arises: Will stablecoin become the new financial foundation of the US, or will it be further tightened in the future? This will depend on the next steps of Congress and the White House in the coming time.