The U.S. House Financial Services Committee has moved forward with the STABLE Act, aiming to regulate stablecoins. This has sparked discussions, especially regarding Donald Trump's involvement with World Liberty Financial.
Trump's Crypto Connection Sparks Debate
The STABLE Act advanced after an intense session with 26 Republicans and six Democrats voting in favor. Many Democrats are concerned about Trump's deep ties with stablecoins, particularly after his firm, World Liberty Financial, announced its own stablecoin (USD1). Given Trump's history of selling NFTs and meme coins, they argue he could benefit from regulations he may influence as president.
Republican Push for Quick Action
Despite controversy, Republicans are pushing for swift stablecoin regulation by August. Committee Chairman French Hill emphasized the need for 'guardrails, not roadblocks' to foster innovation. Democrats, including Maxine Waters and Stephen Lynch, accused Trump of using presidential influence for personal gain, which Republicans dismissed as unnecessary criticism.
Discussion on Stablecoins, CBDC, and More
Alongside the stablecoin bill, Congress also 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 passed unanimously, while the anti-CBDC bill saw a split vote of 27-22. With both the House and Senate advancing stablecoin bills, lawmakers will work on merging them into a single version for final approval.
The STABLE Act is making headway, and stablecoin regulation remains a hot topic. Donald Trump's role in this context sparks significant debate, and all eyes are on the decisions to be made before the elections.
