A US House committee has advanced a bipartisan bill to regulate privately issued stablecoins, requiring them to be backed 1:1 by US dollars or equivalent assets.

The bill aims to protect consumers and support industry growth.

Democrats proposed amendments to ban Trump and tech firms from issuing tokens and prevent taxpayer-funded bailouts, but these were not adopted.

Meanwhile, Visa, PayPal, and Stripe have invested in stablecoin projects, signaling the sector’s profitability.