U.S. House of Representatives Prepares to Pass Stablecoin Law After Adding CBDC Ban to Secure GOP Votes

The U.S. House of Representatives is preparing to pass a new bill that would regulate stablecoins for the first time under federal law.

Stablecoins are digital tokens designed to hold a steady value, usually pegged to the U.S. dollar. They are widely used in cryptocurrency trading because they allow traders to move funds quickly between exchanges without using banks. Their popularity has grown rapidly in recent years, but until now, the market has operated without a nationwide regulatory framework.

Lawmakers plan to vote on the bill Thursday afternoon. The measure is expected to pass and move to President Donald Trump’s desk for signing as early as Friday. The Senate has already agreed to the stablecoin rules, clearing the way for the House to take final action.

Private Meetings Resolved Republican Opposition

The stablecoin vote follows two days of intense negotiations. A group of conservative Republicans initially refused to support the crypto bills, raising concerns about the potential creation of a government-run central bank digital currency.

Several GOP lawmakers warned that a digital dollar issued by the Federal Reserve could allow federal agencies to track personal spending. To secure their support, House leaders agreed to include language blocking the creation of a central bank digital currency in an unrelated defense spending bill.

The agreement was reached after a Tuesday meeting at the White House, where former President Trump met privately with Republican holdouts to break the stalemate. Even after that meeting, it took another nine hours of discussions on Wednesday night before procedural votes could proceed.

Three Crypto Bills on the House Floor

House lawmakers are scheduled to vote on three separate cryptocurrency bills before the end of the day:

• Stablecoin Bill: Sets federal rules for issuing U.S. dollar-pegged digital tokens and creates oversight for stablecoin issuers.

• Crypto Trading Regulation Bill: Establishes a regulatory framework for cryptocurrency exchanges and trading platforms.

• Central Bank Digital Currency Ban: Prohibits the Federal Reserve from creating or testing a government-issued digital currency without congressional approval.

Ban on Central Bank Digital Currency Became the Sticking Point

Central bank digital currencies, known as CBDCs, have been explored by governments around the world, but the concept has faced strong opposition in the United States from conservative lawmakers.

The Federal Reserve has studied the possibility of a digital dollar but has made no move to launch one. Fed Chair Jerome Powell has publicly stated that the central bank would not proceed without direct authorization from Congress.

By tying the CBDC ban to the defense bill, House leaders resolved the final obstacle blocking the crypto package from moving forward.

Stablecoin Use Has Grown Rapidly

Stablecoins are already a major part of the global crypto market. Companies like Circle and Tether have issued billions of dollars in dollar-backed tokens. These digital assets are frequently used for crypto-to-crypto trading and for holding funds without converting back into cash through traditional banks.

Supporters of stablecoin regulation say federal rules will provide clarity to both issuers and investors. The new legislation includes licensing requirements, regular audits, and strict guidelines to ensure stablecoins are backed by real-world assets.

House Leaders Expect the Bills to Pass

House Speaker Mike Johnson told reporters Thursday afternoon that he expects the stablecoin bill, the broader crypto trading framework, and the CBDC ban to all pass by the end of the day.

Once approved, the bills will move to the White House for President Trump’s signature. If signed into law, this will mark the first time the U.S. government has established clear regulations for stablecoins and crypto trading platforms.

Also Read: Veteran Crypto Analyst Says Bitcoin Will Match Gold’s Market Cap—Warns of Altcoin Crash