The Act requires stablecoins pegged to the dollar to hold equivalent reserves in short-term government debt or similar instruments and be subject to oversight by state or federal regulators, but they will not be covered by federal deposit insurance.

The new regulations open opportunities for retailers, the payment industry, major banks, and tech giants outside the financial sector. Stablecoins are expected to become a mainstream payment method. Large banks are considering issuing stablecoins to earn interest on reserves, and tech companies may also issue stablecoins, potentially disrupting financial and commercial barriers.

The House of Representatives will decide whether to adopt the Senate version or push its own STABLE Act, with differences in regulatory approaches and treatment of foreign issuers. Some Democrats are concerned about insufficient consumer protection, which could lead to fund losses and the need for taxpayer bailouts.

The Senate has warned the House not to amend the bill, stating that changes could kill the legislation. The legislative finish line is near but challenges remain.