U.S. Congress Advances Stablecoin Regulation with the Introduction of the STABLE Act
On March 26, 2025, U.S. lawmakers introduced the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act to advance stablecoin regulation and improve transparency for dollar-backed digital tokens. The proposal outlines how dollar-backed stablecoins should be issued, with requirements focused on transparency and consumer protection.
Congress Pushes Stablecoin Regulation Forward with the STABLE Act
Introduced by Representatives Bryan Steil and French Hill, the STABLE Act forms part of a broader push to build a consistent regulatory structure for cryptocurrency markets. Stablecoin issuers would need to follow financial rules and maintain clear records under the STABLE Act.
Representative Hill said the bill helps clarify financial rules and protects both consumers and the financial system. After gaining bipartisan Senate support, the bill passed through the Banking Committee and is now under review on the Senate floor. Representative Tom Emmer, who has long supported crypto legislation, noted that although the House and Senate bills differ in some areas, lawmakers expect to reconcile those versions as the process moves ahead. While the Senate continues deliberations, the House is refining its version of the bill. To move the legislation forward, the House Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence held a hearing titled “A Golden Age of Digital Assets: Charting a Path Forward.”
This discussion focused on strengthening the bill’s foundation before a full House vote. During the White House crypto summit on March 7, President Donald Trump encouraged lawmakers to pass stablecoin legislation before the August 2025 recess. Still, that timeline may prove difficult due to divisions between crypto industry leaders and banks over key aspects of the bill’s language. In parallel, Emmer has reintroduced the Securities Clarity Act, a separate measure that would define how crypto assets are treated under existing securities law. Co-sponsored by Representative Darren Soto, the bill reflects ongoing efforts to give the digital asset industry regulatory certainty.
STABLE Act and GENIUS Act Propose Different Paths for Stablecoin Regulation
The U.S. Senate Banking Committee recently advanced another stablecoin bill: the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. Unlike the STABLE Act, which outlines broad federal rules for stablecoin issuers, the GENIUS Act centers on defining payment stablecoins as digital tokens pegged to a fixed value and used for transactions. This approach would divide oversight between federal and state regulators, depending on the size and scope of the issuer.
Under the GENIUS Act, issuers managing more than $10 billion in stablecoins would fall under federal regulation. Smaller players could remain under state oversight unless they apply for a federal waiver. The growing debate over stablecoin regulation highlights the need for consistent rules across federal and state agencies.
Gold-Backed Tokens Add Complexity to Stablecoin Regulation
As stablecoin regulation evolves, some industry figures suggest gold-backed stablecoins could see broader global use than those tied to the U.S. dollar. Bitcoin advocate Max Keiser has argued that countries with strained ties to the U.S. often view gold as more stable than the dollar. A recent example is Tether’s Alloy (aUSD₮), launched in June 2024. This stablecoin is backed by Tether Gold (XAU₮) instead of fiat reserves.
Some believe gold-backed stablecoins may gain traction in countries with less trust in the U.S. dollar.
From Experiment to Infrastructure
What began as a workaround to traditional banking is now being treated as financial infrastructure. The STABLE Act’s requirements signal that the era of informal issuance is closing, while the GENIUS Act offers a looser framework for limited use. Either path will impose real consequences on stablecoin providers. For users and institutions, it’s time to start treating stablecoins not as novelties, but as instruments subject to the same scrutiny as any other financial product.