House Committee Favors Stablecoin Regulation To 'Strengthen' Dollar: Majority Whip Says CBDCs Against 'American Values'

The House Financial Services Committee held a hearing Tuesday to discuss the need for stablecoin regulation and the harmful impacts of a U.S. Central Bank Digital Currency.

What Happened: The hearing was led by Chairman Rep. French Hill (R-AR) and was titled “Examining a Federal Framework for Payment Stablecoins and Consequences of a U.S. Central Bank Digital Currency,” according to a press release.

The committee members examined the potential of blockchain technology, especially in stablecoin payments. They also discussed the STABLE Act—a legislation introduced in the House last month that aims to establish a clear regulatory framework for payment stablecoins while adhering to U.S. anti-money laundering and sanctions laws. 

“A properly regulated stablecoin market can strengthen the U.S. dollar's dominance, modernize our payments infrastructure, and promote financial access without government overreach,” Hill stated.

Furthermore, the committee deliberated on the Anti-CBDC Surveillance State Act that prohibits the use of CBDCs for monetary policy.

“CBDCs introduce significant privacy risks and are fundamentally the antithesis of American values," said House Majority Whip Rep. Tom Emmer (R-Minn.), who introduced the bill.

See Also: Eric Trump’s ‘Great Time’ To Buy ETH Backfires? Ethereum Plunges 30% Since His Buy Call

Why It Matters: The hearing comes in the wake of the growing influence of stablecoins in financial markets. A report by Bernstein last month highlighted the role of U.S. dollar-pegged coins such as Tether (CRYPTO: USDT) and USD Coin (CRYPTO: USDC) in streamlining international money transfers.

However, the report also mentioned that their primary use case remains within cryptocurrency capital markets rather than mainstream payment systems​.

Regulations around cryptocurrencies have gained momentum since President Donald Trump took office. The Bitcoin Act of 2025 was introduced in the House on Tuesday, aiming to fund the newly established Strategic Bitcoin Reserve.

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• Peter Schiff Says Hard To See Rationale Of Trump’s Crypto Reserve Move If Bitcoin Has Plunged 30% Since January, Critics Clap Back With ‘Store Of Value’ Narrative

Photo Courtesy: Rokas Tenys On Shutterstock.com

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.