US House Releases Updated Stablecoin Bill, Aims for Clarity and Compliance

On March 26, the US House of Representatives introduced an updated version of the STABLE Act, significantly revising the February 5 draft to regulate payment stablecoins. Introduced by Representatives Bryan Steil and French Hill, the bill seeks to establish a federal framework for stablecoin issuance, excluding securities and other financial products from the definition of "payment stablecoin." The updated bill mandates monthly reserve attestations verified by registered public accounting firms, with potential criminal penalties of up to $1 million or 10 years in prison for false certifications. Regulators must initiate rulemaking within 180 days of enactment to streamline approval for well-capitalized entities. The bill also protects issuers using decentralized networks and requires full backing by cash-equivalent assets, prohibiting yield payments to token holders. It clarifies that the US government does not insure stablecoins, with violations potentially leading to civil or criminal penalties.