Source: Blockchain Knight

On March 26, the U.S. House of Representatives proposed a revised version of the "Stabilized Coin Transparency and Accountability Promotion of Ledgers Economic Act" (STABLE Act, referred to as the STABLE Act), which significantly adjusted the draft on February 5.

The bill aims to regulate payment stablecoins, establish new compliance mechanisms, expand regulatory powers, and clarify key definitions about the issuance and use of digital assets supported by the US dollar.

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

In addition, the bill divides qualified issuing agencies into three categories: federal regulators, non-bank entities approved by the Comptroller of the Currency, and state-level licensing agencies operating under the certification regime.

Compared with the first draft in early February, the revised edition of March 26 introduced several substantial changes.

The updated bill explicitly excludes various financial products, such as securities, deposits and credit union accounts from the definition of "pay stablecoin". This exclusion gives developers and institutions a clearer legal awareness of the scope of eligibility defined by the bill.

The new draft requires that monthly reserve certificates be verified by a registered public accounting firm and requires the CEO and financial officer to authenticate the accuracy of these reports.

Intentionally submitting false certifications can face criminal fines up to $1 million or criminal penalties of 10 years in prison. These certification terms are not available in the February version.

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

The regulators must also submit an annual report to Congress on the processing time of pending applications.

Rep. Bill Huizenga, Republican of Michigan, was the original co-sponsor of the bill, emphasized the importance of the bill on the X platform. He said: "Stablecoins have the potential to simplify our payment system and revolutionize the way our funds are transferred. I am proud to be the original co-sponsor of the two bills together with Rep. Bryan Steil and Rep. French Hill, and look forward to the revision review next week." Rulemaking and Industry Coordination A key addition is to require regulators to initiate rulemaking procedures within 180 days of the bill's enactment to clarify application requirements and simplify the approval process for capital-adequate entities.

The bill also provides clear protection for issuers using public, decentralized networks, stating that such design choices should not be justified by rejection, which is based on blockchain infrastructureThis is an important guarantee for developers who carry out development.

The February and March versions are designed to exclude payment stablecoins from the securities classification. However, the new version more comprehensively revised relevant regulations under the Investment Advisor Act, the Securities Act, the Exchange Act and the Securities Investor Protection Act to ensure consistent treatment in financial regulation.

The updated STABLE Act integrates the processing of decentralized and non-payable stablecoins into a single research clause and reconstructs its approach to international interoperability.

Under revised Article 10, the Ministry of Finance will coordinate with foreign jurisdictions to assess comparability and support the use of cross-border stablecoins, replacing the independent peer-to-peer provisions in the earlier draft.

Additional clause

The March 26 bill imposes strict reserve standards on stablecoin issuers, requiring full support by cash equivalent assets such as treasury bills or demand deposits.

It also prohibits issuers from paying income 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 clarify that the United States does not provide insurance for stablecoins and prohibits any false statements that are contrary to this. Violations of regulations may lead to civil penalties or criminal proceedings under existing federal laws.

The March 26 revision shows that the two parties in Congress are reaching a consensus on formalizing stablecoin regulation and adapting finance to the blockchain native payment system.

In addition, it also reflects a stronger response to the needs of developers and institutions operating in 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 the deliberations, the committee members will study the views of all parties and discuss the amendment.