The House Financial Services Committee on Tuesday discussed a federal framework for stablecoins, resulting in Republican members of the committee stating that stablecoins can have a positive impact on the American financial system.
In the hearing titled “Examining a Federal Framework for Payment Stablecoins and Consequences of a U.S. Central Bank Digital Currency,” committee members tackled the “promise of blockchain technology,” specifically on the utility of stablecoins as a payment mode.
Properly Regulated Stablecoins Can Strengthen US Dollar: Hill
Committee Chairman French Hill of Arizona said stablecoins, when properly regulated, can strengthen the dominance of the U.S. dollar and help modernize the American payments infrastructure.
He also said regulating stablecoins under appropriate terms will promote broader adoption “without government overreach.”
Hill also criticized CBDCs, saying such assets will only concentrate financial power within the federal government and restrict consumers from making their own financial choices.
Simplifying the Payment System with Stablecoins
For Rep. Bill Huizenga of Michigan, it is crucial that Congress makes the necessary moves to establish a framework around stablecoins, given the “immense potential” the digital assets have.
“The capacity to simplify our payment system is going to be huge,” he said.
He went on to urge his colleagues to act on the matter as soon as possible. “As legislators it is ultimately up to us to provide the regulatory clarity needed to ensure that the U.S. dollar remains the dominant reserve currency, and I believe stablecoins can do that,” he said.
Industry Leaders Echo Importance of Stablecoin Legal Frameworks
Witnesses who attended the hearing and spoke on the matter of stablecoin frameworks echoed the sentiments of other lawmakers on the importance of passing legislation that provide clarity on how business should go around with their stablecoin offerings.
Stripe Co-founder and CEO Patrick Collison said some countries have already started putting their legal frameworks in motion and the U.S. should “move quickly and seize the opportunity to lead on global standards for stablecoin and payments regulation.”
Paxos CEO Charles Cascarilla hailed the provisions under the STABLE Act, or the Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025.
“The STABLE Act represents a historic opportunity to cement America’s leadership in digital finance. We strongly support its core framework, particularly its clear distinction between stablecoin issuance and traditional banking,” he said.
US Focuses on Stablecoin Regulation Yet Again
The European Union has been moving fast in legislative work on stablecoin regulation and digital assets regulation. In comparison, the United States has yet to pass a bill that lays out a clear regulatory framework for stablecoin or cryptocurrency regulation.
Based on Tuesday’s hearing, it’s clear that American lawmakers are more focused on delivering a stablecoin framework over frameworks for the broader crypto space.
The same was true when Senate leaders met late last month to discuss digital asset regulations. Republican Sen. Cynthia Lummis said lawmakers will “start with stablecoins,” drawing negative comments from many crypto users who believe policymakers should also put more attention on other assets beyond stablecoins.
The post Stablecoins Will Benefit The US Financial System: House Republicans appeared first on International Business Times.
