The House Financial Services Committee, under the leadership of Chairman French Hill (AR-02), convened today to discuss a federal framework for payment stablecoins and examine the implications of a Central Bank Digital Currency (CBDC) in the United States. The hearing also included a review of the updated STABLE Act bill text.
Chairman Hill opened the session by highlighting the modernization efforts within global payment systems. "Global payment systems are leveraging technology to modernize legacy infrastructure, drive innovation, and expand access while lowering costs," he stated. He emphasized that stablecoins have become integral to these efforts, facilitating billions in transactions daily and providing broader access to digital financial tools.
Since 2022, Republicans on the committee have been working towards establishing a legislative framework for stablecoins. This led to the passage of the Clarity for Payment Stablecoins Act of 2023. Hill noted that recent updates to the STABLE Act reflect feedback received since its initial notice at a hearing chaired by Bryan Steil last month.
"The STABLE Act also makes sure that BSA/AML compliance and oversight are a critical part of this framework," Hill remarked, underscoring its importance in maintaining operational standards for issuers and clarifying regulatory supervision.
Hill warned against CBDCs, which he believes could place government control at the center of digital transactions. "A government-controlled digital dollar would put the Federal Reserve in direct competition with the private sector and undermine the very progress that stablecoins are making," he said.
Acknowledging Tom Emmer's role in opposing CBDCs through his Anti-CBDC Surveillance State Act, Hill expressed gratitude for his colleague's efforts. He concluded by affirming ongoing work on digital asset market structures and looking forward to discussions on keeping U.S. financial innovation at the forefront.
"Thank you to our witnesses for being here today and for your testimony," Hill concluded.