House Financial Services hearing puts STABLE Act, CBDC risks and AML gaps at center of stablecoin debate

The House Financial Services Committee heard testimony and debated the STABLE Act and related proposals on April 9 during a multi‑hour hearing titled “Navigating the Digital Payments Ecosystem, Examining a Federal Framework for Payment Stablecoins and the Consequences of a US Central Bank Digital Currency.” Chairman Hill opened the hearing saying that “a properly regulated stable coin market can strengthen the US dollar's dominance, modernize our payment infrastructure, and promote financial access without government overreach.”

The hearing assembled bipartisan questions about the STABLE Act’s structure, the role of federal and state regulators, and whether the United States needs a central bank digital currency (CBDC). Ranking Member Maxine Waters criticized the current bill draft and recent administration actions, saying the administration has “only enriched himself, his crypto cabinet, and the rest of the crypto billionaire class,” and warned the draft removes important investor protections. Republican backers, including Representative Tom Emmer, argued separately that a CBDC would threaten privacy and competition and supported legislation to bar a retail CBDC.

Industry witnesses told the…