How will the STABLE Act Impact Stablecoins?

• Blockchain Council
• April 04, 2025

The STABLE Act, short for Stablecoin Transparency and Accountability for a Better Ledger Economy, is a bill that could reshape stablecoin regulation in the U.S.. It was introduced in March 2025 by Representatives Bryan Steil and French Hill. The proposal focuses on how digital tokens tied to real-world money, especially the U.S. dollar-backed stablecoins, should be issued and controlled.

This bill has already sparked strong conversations about how the STABLE Act will impact stablecoins and change the way the crypto market operates.

What Does The STABLE Act Try To Do?

The bill’s goal is to bring clear oversight to the growing stablecoin market. Supporters say it’s time for stablecoin issuers to follow similar rules as traditional financial companies. That includes being upfront with users and keeping enough real assets in reserve.

As regulations like the STABLE Act come into play, a Certified Cryptocurrency Auditor™ (CCA) can provide in-depth insights on how stablecoin audits will need to adapt.

Stablecoin Issuers Must Follow Specific Guidelines

Under the Act, only certain institutions can issue these digital tokens:

• Federal banks
• Non-bank firms approved by the OCC
• State-licensed companies under a strict state regime

This means anyone issuing a payment stablecoin in the U.S. must meet government standards or face penalties.

Stablecoin Reserve Requirements Will Be Stricter

The STABLE Act requires issuers to hold reserves on a one-to-one basis. If someone issues 10 million tokens, there must be 10 million dollars’ worth of safe, liquid assets behind them. This could directly affect the way stablecoins are backed and secured, making it harder for bad actors to fake support.

Regular Audits And Public Reporting

One of the most talked-about parts of the bill is the demand for transparency. Issuers must go through audits and show proof that their stablecoins are fully supported by actual assets. This part speaks directly to those asking for better stablecoin transparency requirements in the U.S.

No Yield-Bearing Stablecoins Allowed

The Act blocks issuers from offering interest-earning stablecoins. That means no more returns from holding stablecoins that profit from reserve investments. Many in the crypto space see this as a hit to innovation, especially those who rely on yield-bearing models for their business.

How Will This Change The Stablecoin Market?

People wondering how the STABLE Act affects stablecoins are watching closely. If passed, the bill will bring strict oversight, which could have both good and bad outcomes.

What Stablecoin Issuers Will Have To Do

Issuers will face higher costs due to auditing and reserve maintenance. They’ll need to adapt their business strategies. Still, some firms see this as a chance to gain credibility. Being regulated could give them access to broader financial markets.

But companies built around interest-earning coins might struggle under these new rules.

What Crypto Users Might Experience

For users, the changes could increase confidence in stablecoins. Knowing that these digital dollars are fully backed and legally regulated helps remove the fear of scams. As a result, users might prefer coins that meet STABLE Act stablecoin rules over others.

But users who enjoyed returns from holding coins may feel frustrated, especially if stablecoin interest features disappear completely.

Could This Affect How Stablecoins Fit Into Payments?

Yes. One goal of the Act is to help stablecoins become part of regular financial transactions. If regulated properly, they could be used in payroll, e-commerce, and cross-border payments. Clear rules might help stablecoin adoption in everyday systems.

Still, removing features like interest payments could reduce some appeal. That might slow how fast businesses adopt them.

What Does The Industry Think?

Some Support Regulation

Some leaders in crypto welcome regulation. They believe it could push out untrustworthy projects and build trust with banks and users. They say the bill could support safer growth and attract more attention from major financial players.

Others Worry About Harm To Innovation

Critics argue that the law might limit progress. By banning yield-bearing stablecoins, the bill may take away one of the most useful features in digital finance. They say the STABLE Act impact on stablecoins could be negative if rules are too harsh.

Concerns Over Federal Control

Another concern is control. The bill gives more authority to federal agencies. Some fear this could block states from building their own crypto-friendly policies. States like Wyoming and New York have already passed their own crypto regulation laws.

How Does It Compare With The GENIUS Act?

Another proposal, the GENIUS Act, takes a softer approach to stablecoin regulation in 2025:

• The GENIUS Act lets both state and federal regulators have roles.
• It doesn’t ban algorithmic stablecoins but asks for more research first.
• The STABLE Act puts a two-year pause on creating new algorithmic stablecoins.

The STABLE Act puts a two-year hold on creating or expanding algorithmic coins. The difference in approach could decide which bill becomes law.

Why This Matters Going Forward

Whether you’re a user, a developer, or an investor, these rules will shape the future of stablecoin use in the U.S.. The STABLE Act sets firm rules on how coins should be issued, managed, and backed. If passed, it may boost public trust but reduce creative freedom in the market.

Those following how the STABLE Act impacts stablecoins should keep a close eye on debates in Congress. The final version could look different. But one thing’s clear — stablecoins won’t stay the same.