U.S. Lawmakers Introduce STABLE Act to Regulate Stablecoins

According to ShibDaily, U.S. lawmakers have introduced the STABLE Act, a legislative proposal aimed at enhancing oversight of stablecoins by integrating traditional financial safeguards with digital asset regulations. The bill, presented by Representatives Bryan Steil and French Hill, seeks to improve transparency and accountability as the stablecoin market continues to grow. The STABLE Act, which stands for Stablecoin Transparency and Accountability for a Better Ledger Economy, is currently under review in the Senate after receiving bipartisan support and advancing through the Banking Committee. In addition to the STABLE Act, the U.S. Senate Banking Committee has progressed with the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, marking another legislative effort to regulate stablecoins. While both the STABLE Act and the GENIUS Act aim to regulate stablecoins, they differ in their approaches to oversight and issuer requirements. The STABLE Act emphasizes uniform federal regulation, whereas the GENIUS Act allows for a combination of state and federal oversight based on the issuer's size. A notable distinction between the two bills is their treatment of algorithmic stablecoins. The GENIUS Act mandates the U.S. Treasury Department to conduct a comprehensive study on these assets, known as endogenously collateralized stablecoins, to better understand their potential risks. In contrast, the STABLE Act imposes a two-year moratorium on the issuance of algorithmic stablecoins, providing regulators with time to assess their impact and establish necessary safeguards. Another key difference lies in the definition of payment stablecoins. The GENIUS Act updates the definition to exclude stablecoins backed by other digital assets, ensuring that only those supported by tangible, stable reserves qualify. The STABLE Act also refines the definition but adopts a broader approach to integrating stablecoins into financial markets. Both acts represent significant efforts to provide regulatory clarity in the rapidly evolving stablecoin market. As these proposals advance, stakeholders will closely monitor their implications for innovation, financial stability, and consumer protection in the digital asset space.