US Passes the STABLE Act for USD Stablecoins, Tether, Circle, Other to Benefit?

United States has finally passed the STABLE Act for all USD-pegged stablecoins operating in the country, such as Tether (USDT), Circle (USDC), and others. This is a major milestone for the US stablecoin industry as the US House Financial Services Committee passed the act with a 32-17 vote to bring clarity to this digital assets sector.

STABLE Act Passes Committee with 32-17 Vote

After a 13-hour-long discussion, Financial Services Committee Chair Rep. French Hill and Subcommittee Chair Rep. Bryan Steil announced their decision to pass the much-awaited stablecoin legislation.

The STABLE Act seeks to provide a comprehensive regulation for stablecoin payments to function freely in the US financial system. It would create a regulatory framework specifically designed for USD-pegged stablecoins while maintaining an effective balance between technological innovation and consumer protection. Key provisions of the STABLE Act include:

• Establishing a formal regulatory structure for payment stablecoins.
• Creating strong consumer safeguards while allowing for continued innovation.
• Positioning the United States to maintain leadership in digital asset development.
• Providing clear regulatory parameters for industry participants.
• Modernizing the U.S. payment infrastructure.

Ensuring USD Dominance In Global Finance

Previously, US President Donald Trump stated that stablecoins are important to the US economy and would help maintain the dominance of the US Dollar in the global market. Speaking on the development, Congressman Dan Meuser stated:

“The STABLE Act reinforces the U.S. dollar’s status as the world’s reserve currency by ensuring stablecoins operate within a secure, dollar-backed framework, in America. It will make payments faster, cheaper, and more accessible, reducing costs to the benefit of businesses and consumers alike”.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

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