The U.S. House Financial Services Committee has moved the Stablecoin Bill 2025 one step closer to becoming law, sparking intense debate over President Donald Trump’s alleged ties to digital currency firms. The bipartisan effort seeks to establish clearer regulations for stablecoins like Circle’s USD Coin (USDC) and Tether (USDT), ensuring accountability and transparency within the expanding digital asset space.
Committee Advances STABLE Act
In a key session on Wednesday, the committee approved the Accountability and Transparency of Stablecoins for a Better Ledger Economy (STABLE) Act. The legislation, which could soon be put to a full House vote, aims to tighten supervision of stablecoin issuers and operations, shifting much of the oversight responsibility to state regulators.
Following a lengthy markup process filled with proposed amendments and heated discussions, 27 Republicans and 5 Democrats voted in favor of the bill. This forward momentum aligns with the Senate’s similar efforts to draft its version of stablecoin regulation. If both chambers pass their respective versions, lawmakers will reconcile them into a single bill with hopes of finalizing it before August.
Trump’s Crypto Involvement Sparks Democratic Backlash
Despite the progress, several Democrats raised red flags concerning Trump’s connections to the crypto world. Representative Maxine Waters criticized Trump for allegedly using digital assets for personal gain, labeling his involvement “greedy.” She pointed to the timing of the vote—just a week after World Liberty Financial (WLFI) announced support for the new stablecoin USDI, a project tied to Trump’s financial allies.
Representative Stephen Lynch expressed concern that Trump could influence federal regulators overseeing crypto to benefit his ventures. He warned that such conflicts of interest undermine public trust and would not go unnoticed if the roles were reversed.
Adding to the concerns, Representative Sean Castin highlighted that Tron founder Justin Sun had invested millions in WLFI. He cautioned that foreign investors might be using digital currencies to influence U.S. politics under the radar.
Republicans Defend the Legislation’s Integrity
In response, Republicans dismissed the accusations. Committee Chairman French Hill emphasized that the STABLE Act promotes innovation rather than suppressing it. Representative Bill Huizenga reinforced that the bill sufficiently empowers state-level oversight, making additional restrictions unnecessary.
Republican members stood firm against all amendments to curb Trump’s participation in the crypto space, maintaining that the legislation should not be politicized.
Other Crypto Bills Gain Traction
Alongside the Stablecoin Bill, the committee reviewed several other crypto-related proposals. One bill establishing a federal task force to investigate illicit crypto activities passed unanimously with a 49-0 vote. Another controversial proposal to ban a U.S. Central Bank Digital Currency (CBDC) also advanced, receiving 27 votes in favor and 22 against.
Related article: Trump’s Tariff Tactics: Will Bitcoin Buckle or Bounce?
Next Steps in the Regulatory Process
Looking ahead, the Stablecoin Bill will proceed to a full House vote. If passed, the legislation will move into negotiations with the Senate to create a unified draft.
Additionally, President Trump is expected to sign a separate resolution repealing an IRS rule that applied to decentralized finance (DeFi) transactions. This action would mark the first-ever crypto-related law enacted by Congress, underscoring the growing significance of blockchain regulation in U.S. politics.
With momentum building, stablecoin regulation is finally stepping out of limbo and into the legislative spotlight. As the debate continues, all eyes remain on Capitol Hill.
