US Stablecoin Bill Advances as Trump-Linked Ties Spark Debate

The U.S. took a key step toward regulating stablecoins as the House Financial Services Committee advanced the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act. The move aligns with similar progress in the Senate, setting the stage for a final bill. If approved, it would mark the first major federal legislation targeting dollar-pegged cryptocurrencies like USDT and USDC.

The bill passed the committee with support from 26 Republicans and six Democrats, despite intense debate. Democrats voiced concerns about Donald Trump’s deepening ties to the crypto industry, citing World Liberty Financial’s (WLFI) launch of its own stablecoin, USD1, just days before the vote. Trump’s involvement with NFTs and the $TRUMP memecoin has fueled controversy, especially as he pushes for pro-crypto policies while seeking a return to the White House.

Democrats proposed amendments to limit presidential influence over regulators and prevent conflicts of interest, but these were rejected by the Republican majority. Committee Chair French Hill emphasized that the bill provides necessary regulatory guardrails without stifling innovation.

Rep. Maxine Waters criticized Trump for using his presidential platform to profit from crypto ventures, while Rep. Stephen Lynch warned of the risks of allowing a sitting president to influence oversight of assets he’s directly tied to. Concerns were also raised about foreign investment, particularly from Tron's Justin Sun, in Trump-linked crypto firms.

Despite the controversy, the bill moves closer to a full House vote. Trump is also expected to sign a resolution repealing an IRS rule targeting DeFi transactions, marking his first pro-crypto legislative act. Meanwhile, the committee also advanced a cross-agency crypto enforcement bill and passed a measure opposing a U.S. central bank digital currency.