During a hearing by the US House Subcommittee on Digital Assets, industry advocates emphasized the need for clearer regulatory frameworks under the new administration. Former CFTC Chairman Timothy Massad criticized the proposed STABLE Act, pointing out its inadequacies in covering key issues related to stablecoin regulation. He highlighted that the draft legislation, introduced by House Financial Services Committee Chair French Hill and Subcommittee Chair Bryan Steil, does not address what happens during a stablecoin issuer's bankruptcy, fails to combat risks of financial crime effectively, and lacks enforcement mechanisms against unchartered stablecoin issuers. Massad stated that some provisions might not significantly affect major players like Tether, as there are no penalties for non-compliance. He stressed the necessity for Congress to empower regulators more robustly regarding stablecoin oversight.

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