The United States has finally passed the STABLE Act, a major milestone for the US stablecoin industry. The Act focuses on regulating USD-pegged stablecoins like Tether (USDT) and Circle (USDC) to provide clarity and oversight to this digital assets sector. The Financial Services Committee passed the act with a 32-17 vote after a 13-hour-long discussion. The goal of the STABLE Act is to create a regulatory framework specifically designed for stablecoin payments to function freely in the US financial system while ensuring consumer protection and technological innovation. Key provisions of the act include establishing a formal regulatory structure, creating consumer safeguards, maintaining US leadership in digital asset development, providing clear regulatory parameters for industry participants, and modernizing the US payment infrastructure.
US President Donald Trump has previously highlighted the importance of stablecoins in the US economy to maintain the dominance of the US Dollar in the global market. Congressman Dan Meuser emphasized that the STABLE Act will reinforce the US dollar’s status as the world’s reserve currency by ensuring stablecoins operate within a secure, dollar-backed framework in America. This move is expected to make payments faster, cheaper, and more accessible, benefiting businesses and consumers alike. The announcement comes amidst President Trump’s announcement of reciprocal tariffs, which has triggered strong volatility in global markets.
Traditional US banks are now showing increasing interest in the USD-pegged stablecoin sector, with several banks exploring the launch of their own stablecoins. Global banks and fintech firms are also joining the trend, introducing their stablecoins to leverage growing adoption and supportive regulations. Bank of America (BoA) is currently exploring the possibility of launching its stablecoin, following the footsteps of other payment providers like Standard Chartered, PayPal, and Revolut. Additionally, Custodia Bank and Vantage Bank recently made history by launching the first US bank-issued stablecoin named Avit on a permissionless blockchain, specifically the Ethereum network.
The passage of the STABLE Act in the United States signifies a significant step towards regulating the stablecoin industry and providing clarity to market participants. The act aims to establish a formal regulatory structure for USD-pegged stablecoins, ensuring consumer protection while fostering continued innovation in the sector. This move is expected to position the US as a leader in digital asset development and modernize the country’s payment infrastructure. With traditional banks and fintech firms actively exploring stablecoin launches, the sector is poised for further growth and adoption in the coming years. As global markets navigate through economic uncertainties, the regulation of stablecoins in the US could play a crucial role in stabilizing financial transactions and maintaining the dominance of the US Dollar in the international market.
