- The U.S. draft bill proposes a two-year ban on self-backed stablecoins and mandates a Treasury study on potential risks.
- The new regulation gives the OCC authority to oversee stablecoin issuers, aiming to ensure stability and compliance in the financial system.
French Hill, chairman of the US House Financial Services Committee, and Bryan Steil, chairman of the Digital Assets Subcommittee, have just released a draft of the most recent stablecoin regulations. A two-year ban on stablecoins backed entirely by self-issued digital assets is one of the primary ideas in the proposal.
Known as the STABLE Act of 2025, this bill seeks to offer clarity for the United States’ payment stablecoin issuing and operation.
Conversely, this rule allows financial authorities time to investigate the effects of such stablecoins in more depth. The US Treasury Department has to do thorough research to evaluate the potential risks presented, including their possible influence on the world payment system and economic stability.
OCC Will Have Authority to Oversee Stablecoins
Particularly for businesses that provide US dollar-based stablecoins, the rule brings significant changes to the oversight over stablecoins. Should the draft be approved, the Office of the Comptroller of the Currency (OCC) will have complete jurisdiction to authorize and supervise non-bank stablecoin issuers seeking official US operation.
Unlike earlier versions that gave the Federal Reserve main responsibility, this one approaches since stablecoin issuing would be directly supervised by authorities who concentrate on the banking and financial sector, this shift should guarantee more stability of this process.
How New Rules Could Reshape Stablecoin Adoption in Finance
Unquestionably, this regulation will have a big effect on the stablecoin market. Some businesses, depending on their own digital assets to support stablecoins, could have to change drastically. For users and investors, nevertheless, this regulation can offer more peace of mind since authorities will guarantee that only stablecoins with high asset reserves may function.
Moreover, this regulation creates chances for the acceptance of stablecoins in the larger financial system. Payment firms and financial institutions can be more sure in employing stablecoins for daily transactions knowing a clear legal road.
Stablecoin Transactions Surpass Visa and Mastercard
Stablecoin transaction data reveal an amazing trend even while this regulation is still under debate. The CNF had noted that stablecoin transactions in 2024 have exceeded Visa and Mastercard transaction totals at $15.6 trillion. This illustrates the growing acceptance of blockchain in the financial industry and the part stablecoins play as an alternative digital payment that global users are progressively depending on.
Another indication that confidence in stablecoins is rising is their growing liquidity. Stablecoins can be progressively embraced in many spheres, from trade to cross-border payments, if appropriate rules are followed.
Can New Rules Protect Users Without Killing Innovation?
Although this oversight helps the sector to become clear-cut, some difficulties still have to be overcome. One of them is how to guarantee that this regulation does not really stifle creativity. Some blockchain companies worry that too rigorous rules may restrict the creation of stablecoins and associated ecosystems.
Nonetheless, given continuous debates and several players engaged in the rule-making process, there is hope this rule can strike a compromise between sector expansion and user protection.
