STABLE Act of 2025

Consumer Asset Protection: Issuers must maintain reserves on at least a 1-to-1 basis using specific assets like U.S. currency or Treasury bills to back outstanding stablecoins (Section 4(a)(1)(A)).

Transparency and Accountability: Issuers are required to publish monthly reports on the composition of their reserves and their total outstanding stablecoins on their websites (Section 4(a)(1)(D)).

Protection Against Misrepresentation: The bill makes it unlawful to claim that payment stablecoins are backed by the full faith and credit of the U.S. or are subject to federal deposit insurance (Section 4(c)).

Asset Segregation: Custodians are required to treat customer property as belonging to the customer and must not commingle it with their own funds (Section 8(b)(1)).

Priority in Insolvency: In the event of an issuer's insolvency, claims held by persons for reserves must have priority over other claims, except for administrative expenses (Section s 8(c)(2)).

Regulatory Oversight for Nonbanks: Federal qualified nonbank payment stablecoin issuers are subject to regulation and supervision by the Comptroller to monitor financial conditions and risks (Section 6(a)(2)).

Strict Penalties for Officers: Chief Executive Officers and Chief Financial Officers face significant fines and imprisonment for submitting monthly certifications that do not fairly present required information (Section 4(a)(4)(C)).

Limitations on Yield: Permitted payment stablecoin issuers are strictly prohibited from paying interest or yield to holders of their stablecoins (Section 4(a)(9)).

Criminal Liability for Misconduct: Individuals who submit certifications knowing they are inaccurate face fines of up to $1,000,000 and up to 10 years in prison, while willful submissions can lead to $5,000,000 fines and 20 years in prison (Section 4(a)(4)(C)).

Civil Penalties for Unpermitted Issuance: Any person who issues a stablecoin without being a permitted issuer is subject to civil penalties of up to $100,000 for each day the violation continues (Section 6(b)(5)(A)).

Moratorium on Certain Assets: For a two-year period starting on the date of enactment, it is unlawful to issue endogenously collateralized stablecoins that were not already in existence (Section 11(a)).