FOR IMMEDIATE RELEASE: April 3, 2025
CONTACT: Carter Dougherty, carter@ourfinancialsecurity.org
House Committee Passes Crypto Bill Devoid of Fraud and Corruption Limits
Industry giveaways will hurt consumers, farmers, and small businesses
Washington, DC – The House Financial Services Committee today approved a massive giveaway to the cryptocurrency industry with a bill on stablecoins that lacks basic fraud and consumer safeguards and does nothing to address the corrupt crypto business deals that the Trump family is now pursuing. It also approved a bill to gut small business and farm lending transparency requirements under Section 1071 of the Dodd-Frank Act.
“With no meaningful safeguards or consequences this legislation will make stablecoins assets appear safe in ways that will harm consumers, not help them,” said Mark Hays, senior policy analyst at Americans for Financial Reform. “Taxpayers may also find themselves on the hook for the future failures of stablecoin companies as these cryptocurrencies become ever-more intertwined with the traditional banking system.”
The House committee passed H.R. 2392, the “STABLE Act of 2025’’ following the Senate Banking Committee’s passage of a similar bill. The legislation is nearly devoid of any effective regulatory safeguards and will hurt everyday people, drive up fraud, and eventually harm the mainstream financial system, setting the market up for future financial crises that could rival 2008.
The committee failed to address President Trump’s clear conflicts of interest as this bill heads closer towards President Trump’s signature for enactment. Recently, President Trump’s eldest sons announced plans to launch their own new stablecoin, pegged to the U.S. dollar, which would allow family members to directly profit from passage of the STABLE Act. All three of the amendments that attempted to address Trump’s stablecoin conflicts of interest (two by Ranking Member Maxine Waters and one by Rep. Sam Liccardo) were defeated.
The House Financial Services Committee also passed H.R. 976, the “1071 Repeal to Protect Small Business Lending Act,’’ which will hurt small businesses and farmers and the communities they serve by undermining lending transparency and lowering competition. Section 1071 of the Dodd-Frank Act was put in place following the 2008 financial crisis to identify community development, small business, and farm capital needs; improve transparency in these markets; and assess compliance with fair lending and anti-discrimination statutes.
“Fair and equitable access to farm and small business credit helps spur broad-based economic growth and bolsters household wealth building,” said Patrick Woodall, managing director for policy at AFR. “The commonsense farm and small business loan data collection helps communities and local governments identify the unmet capital needs and barriers to credit that can exacerbate longstanding community development needs, especially in lower-income areas, rural areas, and communities of color.”
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