April 2nd, the U.S. House Financial Services Committee Passed the Stability Act
On April 2, the U.S. House Financial Services Committee passed the Stability Act, which now requires a vote in the full House before proceeding to the Senate for its next approval stage. The Act was passed with a vote of 32 to 17, establishing stability, transparency, and accountability for the Better Ledger Economy Act (Stability) legislation. This legislation is formally titled “Stablecoin Binds and Banking License Enforcement Act,” which was initially proposed in 2020 but failed to pass. It was originally designed to regulate stablecoin issuers by requiring them to obtain banking licenses and comply with traditional banking regulations.
.@financialcmte just passed the Stability Act. Full speed ahead. pic.twitter.com/6NzNdlHqgc
-Bryan Steil (@repbryansteil) April 3, 2025
Progress on Stablecoin Regulation
The current Stability Act, introduced again after revisions in March, differs slightly from similar proposals made in 2023. According to Bryan Steil, the chair of the Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee, it empowers the Office of the Comptroller of the Currency (OCC) to oversee audits.
Steil stated, “The Stability Act can protect consumers while solidifying the dollar as the world’s reserve currency and fostering the next generation of Web3 businesses in the U.S.”
“I am pleased to support the Stability Act and continue the work of the House Financial Services Committee to advance stablecoin regulation that promotes a robust national path,” said Republican Representative Mike Flood.
“Stablecoins can not only help Americans build wealth but also promote American values and leadership both domestically and globally,” added California Representative Young Kim.
Meanwhile, Congress members and advocates said the legislation would “make payments faster, cheaper, and more accessible, thus benefiting businesses and consumers.”
Setting a Regulatory Framework for Payment Stablecoins
The Stability Act establishes a regulatory framework for payment stablecoins that will protect innovation and consumers. pic.twitter.com/BJCUXlpcNr
– Financial Services Republicans (@financialcmte) April 2, 2025
Other Stablecoin-Related Legislation Under Review
Other stablecoin-related bills are also under consideration in Congress, including the GENIUS Act, which aims to provide guidance and establish national innovation by defining reserve requirements for stablecoin issuers.
Outlook for the Stablecoin Ecosystem
The stablecoin ecosystem is currently dominated by two players: Tether, with a market share of 60% and a circulation of $144 billion, and Circle, with a share of 25% and $60 billion. USDS, formerly known as Maker Dai, is the third-largest stablecoin with a circulation of $8 billion and a market share of 3.4%.
Earlier this week, Circle filed its long-awaited IPO with the U.S. Securities and Exchange Commission. Meanwhile, Binance is experiencing turbulence in the European market, involving several stablecoins, including USDT, DAI, and TUSD, to comply with strict mica regulations.
