H.R.2392 - Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025; STABLE Act of 2025 (119th Congress)
Summary
H.R.2392, the STABLE Act of 2025, aims to regulate payment stablecoins by establishing a framework for their issuance and operation in the United States. It defines key terms, sets limitations on who can issue stablecoins, and outlines requirements for maintaining reserves and ensuring consumer protection. The bill also addresses the roles of federal and state regulators in overseeing stablecoin issuers.
Expected Effects
The STABLE Act will create a regulated environment for payment stablecoins, potentially fostering greater trust and adoption. It will also likely lead to increased compliance costs for stablecoin issuers. The Act could also preempt certain state laws, consolidating regulatory power at the federal level.
Potential Benefits
- Increased consumer protection through reserve requirements and redemption policies.
- Enhanced regulatory clarity for stablecoin issuers, potentially attracting more investment.
- Greater financial stability by treating stablecoin issuers as financial institutions under the Bank Secrecy Act.
- Promotion of innovation in the digital asset space by providing a clear regulatory path.
- Standardized interoperability standards for payment stablecoins.
Potential Disadvantages
- Potential for stifling innovation due to strict regulatory requirements.
- Increased compliance costs for stablecoin issuers, potentially driving smaller players out of the market.
- Federal preemption of state laws, potentially limiting state regulatory flexibility.
- Moratorium on endogenously collateralized stablecoins, restricting certain types of digital asset innovation.
- Possible limitations on individual freedom to transact with digital assets due to custodial intermediary regulations.
Constitutional Alignment
The bill's alignment with the U.S. Constitution is primarily based on Congress's power to regulate commerce (Article I, Section 8, Clause 3). The regulation of stablecoins, which are used in financial transactions, falls under this power. The bill also touches on issues related to state versus federal authority, potentially raising questions about the Tenth Amendment and the balance of power between the federal government and the states.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).