United States of America: STABLE Act (SB 394) was introduced to Senate

On 4 February 2025, the Stablecoin Transparency and Accountability for a Better Ledger Economy Act (STABLE Act/SB 394) was introduced into the US Congress. The Act establishes a regulatory framework for payment stablecoins, mandating issuers maintain 1:1 reserves, undergo federal or state oversight, and follow transparency and consumer protection measures. The issuance of stablecoins is restricted to approved banking institutions, credit unions, or regulated non-bank entities, with federal agencies overseeing bank-backed issuers and states regulating state-qualified issuers. In high-risk situations, federal regulators may intervene. The Act also mandates the establishment of interoperability standards for stablecoin transactions and imposes a two-year moratorium on algorithmic stablecoins, requiring the US Treasury to conduct a study on their associated risks. Furthermore, stablecoins are explicitly excluded from securities classification, and federal agencies will work on international regulatory reciprocity.