Lawmakers Debate Stablecoin Bill as Trump’s Crypto Ties Raise Concerns

A prominent U.S. House committee has taken a big step toward stablecoin regulations. The House Financial Services Committee improved the Accountability and Transparency of this digital currency for a Better Ledger Economy (STABLE) Act. The draft is moving towards a full House vote, it aims to focus supervision of coins like Circle’s USD Coin (USDC) and Tether (USDT) . Democrats are coming in support of the bill with Republicans but questioned Trump's connection with the crypto market.

Stablecoin Bill Moves Forward

The Senate made a similar move earlier. If both chambers approve the Stable coin bill , lawmakers will combine the two versions into one final law, aiming to finish by August.

On Wednesday, during the vote, 27 Republicans and 5 Democrats put the Stablecoin bill forward after a long markup session. Lawmakers discussed and suggested amendments.

During the Wednesday vote, five Democrats joined 27 Republicans to push the stablecoin bill forward after a long markup session, where lawmakers debated and proposed amendments. Few Democrats objected to the participation of Trump in the crypto industry. It is particularly after the WLFI (World Liberty Financial) supported the new stablecoin, USDI, only a week before the vote. WLFI is associated with Trump, who has also participated in promoting the $TRUMP memecoin and selling NFTs.

Democrats Raise Conflict of Interest Worries

Some Democrats on the committee, including Representative Maxine Waters, said Trump’s business ties to crypto could be a problem. Waters claimed the President was using his position to make money from crypto, calling it “greedy.”

Representative Stephen Lynch also had concerns. He said that as president, he could control the people who regulate this currency, which might benefit his own business. Lynch argued that if a Democratic president did the same, Republicans would be angry.

Representative Sean Castin pointed out that Justin Sun, the founder of Tron, has invested millions in WLFI. Castin warned that foreign investors might secretly influence U.S. officials through this digital currency.

Republicans Defend the Draft

Republicans did not agree with these concerns. Committee Chairman French Hill said the proposed law is about setting rules for innovation, not blocking it. Republicans rejected all changes meant to limit Trump’s involvement. Representative Huizenga added that the draft gives enough power to state regulators to oversee the concerned currency.

Other Crypto-Related Bills Also Debated

Along with the U.S. Stablecoin Bill 2025, the committee also focused on other legislation related to cryptocurrency. Lawmakers discussed a draft to create a task force to look for illicit crypto activities; this passed unanimously (49-0). Another rule suggesting to ban a U.S. CBDC (central bank digital currency was passed, with 27 votes in favor and 22 against.

What’s Next?

It is expected that Trump would sign a resolution cancelling an IRS (Internal Revenue Service) rule that considered DeFi (decentralized finance) transactions. The resolution would be the first-ever crypto law passed by Congress. Although the U.S. President has to confirm the signing date, supporters are expecting it to happen soon.

As the Stablecoin Bill 2025 is now being forwarded, the next move is a full house vote. It is followed by negotiations with the Senate to confirm the law.