US House Committee forwards Stablecoin Bill: Amid Trump Concerns

US Lawmakers Move Forward with Stablecoin Bill Amid Concerns Over Trump's Crypto Ties

A key U.S. House committee has taken a significant step toward regulating stablecoins, a form of cryptocurrency designed to maintain a stable value. The House Financial Services Committee recently advanced the Accountability and Transparency of Digital Currencies for a Better Ledger Economy (STABLE) Act, a draft bill aimed at providing oversight for stablecoins such as Circle's USD Coin (USDC) and Tether (USDT). This legislation is now progressing toward a full House vote and could become a major milestone in the regulation of the growing stablecoin market.

Stablecoin Bill Advances Amid Bipartisan Support

In a parallel development, the U.S. Senate made a similar move earlier, signaling growing bipartisan interest in establishing regulatory frameworks for the crypto space. If both the Senate and House of Representatives approve their respective versions of the stablecoin bill, the two drafts will be reconciled into a single, unified piece of legislation. Lawmakers are aiming to finalize the law by August of this year.

The bill, which aims to ensure accountability and transparency in the stablecoin sector, is garnering support from both Democratic and Republican lawmakers. During a pivotal vote on Wednesday, 27 Republicans and 5 Democrats voted in favor of advancing the bill, following a lengthy markup session that involved extensive discussions and amendments.

Despite the bipartisan backing, some Democratic members have raised concerns, particularly regarding former U.S. President Donald Trump’s connection to the crypto industry. Critics argue that his business ties could pose a conflict of interest as he continues to engage with cryptocurrency ventures.

Democrats Express Concerns Over Trump’s Crypto Involvement

The debate over Trump’s involvement in cryptocurrency has raised ethical and regulatory questions. Democrats, including Representative Maxine Waters, have voiced concerns about Trump’s potential influence on the market, particularly in light of his ties to World Liberty Financial (WLFI), a company that recently supported the launch of a new stablecoin, USDI. This support came just days before the crucial vote on the stablecoin bill.

Representative Waters expressed her unease, accusing Trump of using his presidential platform to further his financial interests in the crypto sector. She described his actions as “greedy,” adding that his business dealings could undermine public trust in the regulatory process. Other members, such as Representative Stephen Lynch, also questioned whether Trump's involvement could lead to favorable regulatory outcomes for his own crypto ventures.

Lynch raised a broader issue of potential conflicts of interest, suggesting that if a Democratic president were to engage in similar activities, Republicans would likely react with outrage. The issue of regulatory control and potential bias has become a point of contention among lawmakers, with many fearing that Trump’s crypto dealings could benefit from his past political influence.

Representative Sean Castin added another layer to the debate by pointing out that Justin Sun, the founder of the Tron cryptocurrency network, had invested millions into WLFI. Castin warned that foreign investors, through their support of U.S.-based crypto companies, could secretly influence U.S. policymakers, raising national security concerns.

Republicans Defend the Bill, Reject Proposed Amendments

In contrast, Republicans have pushed back against the concerns raised by their Democratic colleagues. Committee Chairman French Hill defended the stablecoin bill, emphasizing that the proposed regulations were intended to establish clear rules for innovation in the crypto space, rather than stifle progress. Hill rejected proposed amendments that would have limited Trump’s involvement in the industry, stressing that such changes would undermine the bill’s effectiveness.

Republican representatives argued that the draft bill provides sufficient oversight and authority to state regulators, empowering them to monitor the stablecoin market and ensure transparency. This push for regulatory clarity and the focus on allowing innovation to thrive reflects a broader Republican stance on cryptocurrency, with many party members advocating for a balanced approach that fosters growth while addressing potential risks.

Debate Over Other Crypto-Related Bills

The debate over stablecoin regulation is part of a broader conversation about cryptocurrency in the U.S. In addition to the Stablecoin Bill 2025, the House Financial Services Committee also discussed other crypto-related legislation. One bill, aimed at addressing illicit crypto activities, passed unanimously with a 49-0 vote, while another proposing a ban on the U.S. Central Bank Digital Currency (CBDC) saw mixed reactions, passing with 27 votes in favor and 22 against.

These discussions reflect a growing recognition of the need for comprehensive crypto regulations that address not only stablecoins but also other forms of digital assets. As the industry continues to evolve rapidly, lawmakers are under increasing pressure to act swiftly to protect consumers, ensure market integrity, and prevent misuse of digital currencies.

What’s Next for Stablecoin Regulation?

Looking ahead, it is expected that former President Trump will soon sign a resolution to overturn an Internal Revenue Service (IRS) rule that had considered decentralized finance (DeFi) transactions as taxable events. This resolution would mark a significant development in U.S. crypto regulation, as it would be the first crypto law passed by Congress.

As for the Stablecoin Bill 2025, its next step is a full House vote, after which it will proceed to the Senate for further negotiations. Once both chambers reach an agreement, the final version of the bill will be presented for the president’s approval, marking a crucial moment for the future of stablecoin regulation in the U.S.

With the regulatory landscape for digital currencies rapidly evolving, all eyes are on Washington as lawmakers continue to grapple with the complexities of regulating a rapidly growing and increasingly influential market.

Source: cryptoNews

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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