April 3, 2025
A Viable Alternative
The bill requires stablecoins to be backed one-to-one by assets like U.S. dollars or short-term government debt, under state or federal oversight.
Republicans and some Democrats view stablecoins as a faster, cheaper alternative to traditional banking and believe a federal regulatory framework will protect consumers and keep cryptocurrency businesses in the United States.
Source: X (@FinancialCmte)
The committee rejected amendments to block Trump, his family, and tech companies from creating stablecoins and to prevent taxpayer bailouts for failing stablecoin ventures.
Resolving Differences
Chairman French Hill of Arkansas emphasized the need for “innovation with guardrails,” viewing stablecoins as a way to modernize cross-border payments and reduce reliance on traditional banking. The bill aligns closely with a version passed by the Senate Banking Committee, and lawmakers hope to resolve differences soon.
Maxine Waters, a top Democrat, criticized the bill for not preventing Trump’s family from owning stablecoin ventures, arguing it benefits figures like Trump, Elon Musk, and major corporations. Despite various concerns, Representative Gregory Meeks of New York voted in favor, stressing the need for certainty in the cryptocurrency sector.
