- US lawmakers French Hill and Bryan Steil released a discussion draft on stablecoin regulations.
- The proposed STABLE Act of 2025 is focused on potential benefits and risks with stablecoins.
- Trump’s Crypto Czar, David Sacks, claims that stablecoins could play a vital role in USD’s global dominance.
French Hill, chair of the House Financial Services Committee, and Bryan Steil, chairman of the House’s Subcommittee on Digital Assets, have released a draft discussing stablecoin regulation in the United States. Meanwhile, the market remains bearish as Bitcoin still hasn’t reclaimed the $100,000 level.
In a post on X (formerly Twitter), FOX Business journalist Eleanor Terrett shared the draft, which aims to establish clear guidelines for the offering and use of dollar-pegged stablecoins in the United States. The proposed STABLE Act of 2025 calls for a complete two-year ban on stablecoins backed by self-issued digital assets and requires the US Treasury to conduct a more thorough review on their issuance and use.
Hill said that the STABLE Act will expand on the work of Patrick McHenry, the former chair of the House Financial Services Committee. He also noted that the draft will “clarify rules for payment stablecoins and create a clear federal and state route for stablecoin issuers.”
Related: Stablecoins Rule the Day, But Which Crypto Sector Could Top Them?
Hill and Steil will collaborate and seek public input on their draft. Aligned with the pro-crypto administration of Donald Trump, Hill envisions “delivering a dollar-backed stablecoin for the American people.” Senate Banking Committee Chairman Tim Scott, along with Senators Bill Hagerty and Cynthia Lummis, will also help advance the draft to the President’s desk soon.
Trump’s Crypto Czar Weighs In on Stablecoins
David Sacks, Donald Trump’s Crypto Czar, stated in a recent conference on Capitol Hill that stablecoins could be key to reinforcing the dollar’s global dominance. He argues that encouraging the use of stablecoins backed by the US dollar would boost the digital use of the dollar as a world reserve currency.
Related: Tether Expands Beyond Stablecoins with AI, Bitcoin Tech
Meanwhile, Sacks noted that the process could generate “potentially trillions of dollars of demand for U.S. treasuries, which might lower long-term interest rates.” Data from DefiLlama shows the stablecoin market cap stands at $223 billion, with Tether’s USDT leading at 63.59%.
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