The U.S. House of Representatives has taken a significant step toward regulating the stablecoin market. The proposed “STABLE Act of 2025” aims to impose a two-year restriction on stablecoins backed solely by their own issued digital assets. Additionally, it mandates the U.S. Treasury Department to assess the financial risks associated with stablecoins.
According to a draft of the bill shared by Fox reporter Eleanor Terrett, stablecoin issuers will be required to comply with regulatory oversight and establish a structure to secure their reserves. This regulation could directly impact algorithmic stablecoins and certain stablecoin models within the decentralized finance (DeFi) ecosystem.
Industry experts argue that the new regulation could enhance security within the stablecoin market, while some investors and crypto firms believe such restrictions could hinder innovation and decentralization. While it remains uncertain whether the bill will pass through Congress, it is evident that the U.S. is planning to implement stricter regulations on the stablecoin market.
