In March 2025, Representatives Bryan Steil (WI-01) and French Hill (AR-02) introduced the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act. This bipartisan legislation proposes a sweeping regulatory framework for payment stablecoins—digital assets pegged to the U.S. dollar and designed for payments and settlement.
While similar in structure to the GENIUS Act in the Senate, the STABLE Act offers its own take on compliance, issuer permissions, and reserve management. For fintech companies, crypto startups, investors, and traditional financial institutions, this legislation outlines both a roadmap and a new set of legal boundaries.
In this blog post, we break down:
- What the STABLE Act proposes
- Which players benefit from its passage
- Who might face new compliance challenges
- How this bill impacts the future of stablecoin innovation in the U.S.
What the STABLE Act Proposes
You can read the full legislative text of the STABLE Act here.
The STABLE Act defines “payment stablecoins” as digital assets backed 1:1 with fiat currency, intended for use in transactions and settlements. It offers a licensing and compliance framework at both the federal and state levels.
Key Features Include:
- Issuer Permissions:
- Subsidiaries of insured depository institutions (IDIs)
- Federally qualified nonbank issuers
- State-chartered stablecoin issuers
- Reserve Backing:
- 100% backing with U.S. currency, insured deposits, or U.S. Treasuries with maturities of 93 days or less
- Dual Regulatory Oversight:
- Federal and state regulators share responsibilities depending on issuer type
- Consumer Protections:
- Stablecoin holders get priority claims over other creditors in the event of issuer insolvency
The intent is clear: bring stablecoins into the regulatory fold without stifling growth, while ensuring they’re as safe and predictable as traditional financial instruments.
Who Benefits from the STABLE Act? Stablecoin Compliance and Industry Impact
1. Traditional Financial Institutions
Banks and credit unions with existing compliance infrastructure will find it easiest to enter the market through authorized subsidiaries. The bill essentially gives legacy institutions a fast track into digital currency issuance.
2. Well-Funded Fintechs and Infrastructure Providers
Larger fintechs with strong compliance capabilities can become federally or state-qualified issuers. This includes stablecoin infrastructure startups already working with banks or major wallets.
3. Consumers
The Act’s prioritization of consumer claims and reserve transparency improves public confidence in stablecoins. Users are more likely to trust assets that meet rigorous standards and offer legal protections.
4. The U.S. Dollar
By requiring stablecoins to be dollar-backed and tightly regulated, the STABLE Act reinforces the dollar’s position as the world’s leading settlement currency—now extended to blockchain rails.
Who Faces Compliance Challenges Under the STABLE Act?
1. Unregulated and Offshore Stablecoin Issuers
The Act prohibits issuance of payment stablecoins by any entity not authorized under its provisions. This will likely restrict U.S. access to coins like Tether and other offshore products that do not meet new federal standards.
2. Early-Stage Crypto Startups
Smaller firms may find the capital and compliance burden of becoming an issuer too steep. This risks further entrenching incumbent players and limiting new entrants.
3. Crypto Platforms Listing Non-Compliant Coins
Exchanges and wallets that support non-compliant stablecoins could face legal and operational risks. The bill doesn’t just regulate issuers—it creates downstream compliance expectations for ecosystem participants.
Comparing the STABLE Act and GENIUS Act: Key Differences
For a full breakdown of the Senate’s counterpart bill, read our GENIUS Act blog post.
While the GENIUS Act is a Senate initiative and the STABLE Act is a House bill, they share a similar regulatory vision. However, the STABLE Act:
- Places a heavier emphasis on federal oversight versus state
- Includes more detailed consumer protection provisions
- Has drawn earlier bipartisan momentum in the House
Both bills aim to unify fragmented regulatory treatment of stablecoins and reduce legal uncertainty, but their differences will be key in conference negotiations.
What Happens Next?
Congress is likely to hold additional hearings on stablecoin regulation throughout 2025. Lawmakers may propose amendments addressing foreign stablecoin oversight and systemic risk concerns. A reconciliation process with the Senate’s GENIUS Act—if it passes—could shape the final contours of federal stablecoin law.
Veritas Global’s Take: Navigating the Future of Stablecoin Regulation
“The bill draws a clear line between regulated and offshore stablecoin providers.”
The STABLE Act of 2025 shows that stablecoin regulation in the U.S. is no longer theoretical—it’s happening now. As regulators look to rein in the most systemically relevant parts of the crypto market, payment stablecoins are at the center of the conversation.
If passed, the STABLE Act would set the tone for how fintechs, banks, and crypto-native issuers design, manage, and distribute dollar-backed digital assets. The bill would not eliminate innovation, but it would require founders and investors to play by a clear set of rules.
At Veritas Global, we help financial innovators and digital asset firms navigate new regulatory frameworks like the STABLE Act. Whether you’re launching a stablecoin, investing in the space, or building around compliant infrastructure, we can help.
Building a regulated stablecoin or stablecoin-adjacent product? Contact us today to learn how we can support your strategy from legal structure to regulatory readiness.
