Is the turning point of stablecoin coming? The US House of Representatives makes major adjustments to the STABLE Act

On March 26, the U.S. House of Representatives proposed a revised version of the Stablecoin Transparency and Accountability to Promote Ledger Economy Act (STABLE Act, referred to as the STABLE Act), which made major adjustments to the February 5 draft.

The bill aims to regulate payment stablecoins, establish new compliance mechanisms, expand regulatory powers, and clarify key تحديnitions regarding the issuance and use of dollar-backed digital assets .

The STABLE Act of 2025 was formally proposed by Republican Congressman Bryan Steil of Wisconsin and Republican Congressman French Hill of Arkansas, and is committed to building a federal-level payment stablecoin issuance framework.

In addition, the bill divides qualified issuers into three categories: federal regulators, nonbank entities approved by the Office of the Comptroller of the Currency, and state-licensed agencies operating under a certification system .

New terms and structural changes

The March 26 revision introduced several substantive changes compared to the first draft in early February.

The updated bill explicitly excludes various financial products, such as securities, deposits, and credit union accounts, from the definition of “payment stablecoins.” This exclusion provides developers and institutions with clearer legal understanding of the eligible scope defined by the bill.

The new draft would require verification of monthly reserve certifications by a registered public accounting firm and require CEOs and financial officers to certify the accuracy of those reports.

Willfully submitting a false certification could result in a criminal fine of up to $1 million or 10 years in prison . These certification provisions were not included in the February version.

Further updates include detailed procedures for reviewing and approving new stablecoin issuers. The revised draft sets decision deadlines for federal regulators, provides a formal right of appeal, and allows applicants to reapply after being rejected.

Regulators must also submit annual reports to Congress on processing times for pending applications .

Michigan Republican Congressman Bill Huizenga, an original co-sponsor of the bill, stressed the importance of the bill on Platform X. He said:

“Stablecoins have the potential to streamline our payment systems and revolutionize how we move money. I’m proud to be an original co-sponsor of both bills along with Rep. Bryan Steil and Rep. French Hill and look forward to reviewing the amendments next week.”

Rulemaking and Industry Coordination

A key addition is a requirement for regulators to initiate rulemaking proceedings within 180 days of enactment to clarify application requirements and streamline the approval process for adequately capitalized entities.

The bill also provides explicit protections for issuers using public, decentralized networks, clarifying that this design choice should not be grounds for rejection, an important safeguard for developers building on blockchain infrastructure.

Both the February and March versions aimed to exclude payment stablecoins from securities classification. However, the new version more comprehensively amends relevant regulations under the Investment Advisers Act, the Securities Act, the تبادل Act, and the Securities Investor Protection Act to ensure consistent treatment in financial regulation.

The updated STABLE Act consolidates the treatment of decentralized stablecoins and non-payment stablecoins into a single research provision and restructures its approach to international interoperability.

Under the revised Article 10, the Treasury will coordinate with foreign jurisdictions to assess comparability and support the use of stablecoins across borders, replacing a stand-alone equivalence clause in an earlier draft.

Additional Terms

The March 26 bill imposes strict reserve standards on stablecoin issuers , requiring them to be fully backed by cash-equivalent assets such as Treasury bills or demand deposits.

It also prohibits issuers from paying returns to token holders and limits issuer activities to core functions such as issuance, redemption, and custody services.

To protect consumers, the bill also includes provisions that make it clear that the U.S. government does not insure stablecoins and prohibits any false statements to the contrary . Violations could trigger civil penalties or criminal prosecution under existing federal law.

The March 26 amendments suggest that bipartisan consensus is building in Congress on formalizing stablecoin regulation and adapting financial policy to blockchain-native payment systems.

Additionally, it reflects a stronger response to the needs of developers and institutions operating at the intersection of fintech and traditional banking.

The U.S. House Financial Services Committee is expected to review the bill in the coming days, during which committee members will study the views of all parties and discuss amendments.

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