The latest version of the STABLE Act, introduced by the US House of Representatives on March 26, brings significant changes and updates to the regulation of payment stablecoins. Led by Representatives Bryan Steil and French Hill, the STABLE Act of 2025 aims to establish a federal framework for the issuance of payment stablecoins, ensuring transparency and accountability in the growing digital asset sector.
One of the key provisions of the revised bill is the clear definition of payment stablecoins, excluding financial products like securities, deposits, and credit union accounts. This distinction provides developers and institutions with a better understanding of what falls under the regulatory purview of the act. Additionally, the new draft requires monthly reserve attestations verified by registered public accounting firms, with chief executive and financial officers certifying the accuracy of these reports. Failure to provide accurate certifications may result in severe penalties, including fines and prison time.
The updated bill also outlines detailed procedures for reviewing and approving new stablecoin issuers, establishing decision deadlines for federal regulators, formal appeal rights, and the opportunity for applicants to reapply following a denial. Regulators are mandated to submit annual reports to Congress on the status of pending applications, ensuring accountability and transparency in the approval process.
Furthermore, the STABLE Act of 2025 includes provisions for regulators to initiate rulemaking within 180 days of enactment, defining application requirements and streamlining approval for well-capitalized entities. The bill also offers protection for issuers utilizing public, decentralized networks, recognizing the importance of blockchain infrastructure in the development of stablecoin technology.
Strict reserve standards are imposed on stablecoin issuers, requiring full backing by cash-equivalent assets such as Treasury bills or demand deposits. Issuers are prohibited from paying yield to token holders and restricted to core functions like issuance, redemption, and custody services. The bill also clarifies that the US government does not insure stablecoins and prohibits any misrepresentation to the contrary, with violations subject to civil penalties or criminal prosecution.
The March 26 revision of the STABLE Act reflects a bipartisan effort to formalize stablecoin regulation and adapt financial policy to blockchain-native payment systems. The House Financial Services Committee is expected to review the bill in the coming days, signaling a growing consensus in Congress on the need for oversight and accountability in the digital asset space.