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 within the United States. The bill defines key terms, sets limitations on who can issue stablecoins, and outlines requirements for maintaining reserves and ensuring compliance. It also addresses state-level regulatory regimes and customer protection measures.
Expected Effects
The STABLE Act will likely lead to increased regulatory oversight of the stablecoin market, potentially fostering greater consumer confidence and market stability. It could also lead to a more clearly defined legal landscape for digital assets. However, it may also increase compliance costs and barriers to entry for smaller players in the stablecoin industry, potentially stifling innovation.
Potential Benefits
- Increased consumer protection through reserve requirements and mandated disclosures.
- Enhanced market stability by regulating stablecoin issuers and their operations.
- Clearer regulatory framework for digital assets, reducing uncertainty for businesses and investors.
- Potential for greater integration of stablecoins into the traditional financial system.
- Standardized interoperability, which could foster innovation.
Potential Disadvantages
- Increased compliance costs for stablecoin issuers, potentially stifling innovation and competition.
- Potential barriers to entry for smaller players, leading to market consolidation.
- Possible preemption of state laws, limiting regulatory flexibility and innovation at the state level.
- Risk of over-regulation, which could drive stablecoin activity offshore.
- Moratorium on endogenously collateralized stablecoins could limit innovation in decentralized finance.
Constitutional Alignment
The STABLE Act's constitutional alignment is complex. Congress has the power to regulate currency and interstate commerce (Article I, Section 8). However, the degree of federal oversight over state-chartered institutions and the potential impact on individual financial privacy could raise concerns under the Tenth Amendment and potentially the Fourth Amendment.
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).