House Financial Services Committee voted on Wednesday to advance an important bill regulating stablecoins. The bill, named "Stablecoin Transparency and Accountability for a Better Ledger Economy," was approved by the committee with a vote of 32 in favor and 17 against on Wednesday.

French Hill, Chairman of the House Financial Services Committee, urged the passage of the bill during a hearing that lasted for hours, emphasizing the importance of regulation for "global competitiveness." Hill said, "Blockchain technology will continue to change the way money flows. In fact, policymakers, regulators, and law enforcement must keep up with these changes."

Hill and Wisconsin Congressman Bryan Steil introduced a bill last week called STABLE, which establishes a framework for stablecoins pegged to the U.S. dollar. The bill includes reserve and capital requirements, including one-to-one backing and anti-money laundering standards.