The United States officially passed the STABLE Act, providing regulatory clarity for USD-pegged stablecoins such as Tether and Circle. This marks a significant milestone in the development of digital currencies in the country.
Path to Passing the Act
The STABLE Act was approved by the US House Financial Services Committee with a 32-17 vote after 13 hours of discussion. The discussion was primarily led by Chair Rep. French Hill and Subcommittee Chair Rep. Bryan Steil.
Goals and Implications of the Act
The STABLE Act lays down a clear framework for stablecoin payments, protecting consumers and encouraging innovation. It also aims to enhance the US payment system and strengthen the dollar’s role in the global economy. President Donald Trump has previously noted the necessity of stablecoins in maintaining US financial dominance.
Reactions and Future Prospects
As major banks are looking to enter the stablecoin market, institutions like Bank of America are considering issuing their own stablecoins, following in the footsteps of Standard Chartered, PayPal, and Revolut. Recently, Custodia Bank and Vantage Bank introduced Avit as the first stablecoin issued by a US bank on Ethereum blockchain for transfers and redemptions.
This new regulatory direction positions the US stablecoin market for rapid growth. It is attracting both traditional banks and new financial institutions, highlighting potential for substantial shifts in the global financial system.
