The US House of Representatives introduced an updated version of the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act on March 26, substantially revising the February 5 draft. 

The legislation aims to regulate payment stablecoins, introduce new compliance mechanisms, expand oversight powers, and clarify key definitions governing the issuance and use of dollar-backed digital assets.

The STABLE Act of 2025, formally introduced by Representatives Bryan Steil (R-WI) and French Hill (R-AR), aims to create a federal framework for payment stablecoin issuance.

Additionally, the bill delineates qualified issuers into federally supervised institutions, nonbank entities approved by the Comptroller, and state-approved entities operating under certified regimes. 

New provisions and structural changes

The March 26 revision introduces several substantive changes compared to the initial February draft.

The updated bill explicitly excludes various financial products, such as securities, deposits, and credit union accounts, from the definition of “payment stablecoin.” This exclusion gives developers and institutions greater legal clarity on what qualifies under the act.

The new draft mandates monthly reserve attestations verified by registered public accounting firms and requires chief executive and financial officers to certify the accuracy of those reports. 

Knowingly submitting false certifications may result in criminal penalties of up to $1 million in fines or 10 years in prison. These certification provisions were not present in the February version.

Further updates include detailed procedures for reviewing and approving new stablecoin issuers. The revised draft imposes decision deadlines for federal regulators, offers formal appeal rights, and allows applicants to reapply following a denial. 

Regulators must also submit annual reports to Congress on the timing of pending applications.

Representative Bill Huizenga (R-MI), an original cosponsor, highlighted the bill’s importance on an X post. He said:

“Stablecoins have the potential to simplify our payment systems and revolutionize the way we move money. I’m proud to be an original cosponsor of this bipartisan bill with Representative Bryan Steil and Representative French Hill and look forward to next week’s markup.”

Rulemaking and industry alignment

A key addition is the mandate for regulators to initiate rulemaking within 180 days of enactment to define application requirements and streamline approval for well-capitalized entities.

The bill also provides express protection for issuers using public, decentralized networks, clarifying that such a design choice is not grounds for denial but a critical assurance for developers building on blockchain infrastructure.

Both the February and March versions aim to exclude payment stablecoins from being classified as securities. However, the newer version more comprehensively amends related statutes under the Advisers Act, Securities Act, Exchange Act, and SIPA to ensure consistent treatment across financial regulations.

The updated STABLE Act consolidates its treatment of decentralized and non-payment stablecoins into a single study provision and restructures its approach to international interoperability. 

Under the revised Section 10, the Treasury will coordinate with foreign jurisdictions to assess comparability and support cross-border stablecoin use, replacing the earlier draft’s standalone reciprocity section.

Additional provisions

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

It also prohibits issuers from paying yield to token holders and restricts issuer activities to core functions such as issuance, redemption, and custody services.

To protect consumers, the bill also includes provisions clarifying that the US government does not insure stablecoins and prohibits any misrepresentation to the contrary. Violations may trigger civil penalties or criminal prosecution under existing federal laws.

The March 26 revision signals a growing bipartisan consensus in Congress to formalize stablecoin regulation and adapt financial policy to blockchain-native payment systems.

Additionally, it reflects increased responsiveness to the needs of developers and institutions operating at the intersection of fintech and traditional banking.

The House Financial Services Committee is expected to take up the bill for markup in the coming days. Markup is the period when committee members study the viewpoints and discuss amendments.

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