Current stable regulation environment
Global regulatory landscape Stable It is developing rapidly and a large number of legislative efforts are underway in key jurisdictions.
US Stablecoin legislative efforts
In the United States, Stablecoin legislative efforts are underway:
Genius method: The key stability bill was introduced in the Senate in May 2025 to define payment Stablecoin as a digital asset designed primarily to pay or settle. It imposes restrictions on the issuer’s business and is limited to issuance, redemption, management and custody of Stablecoins.
Crucially, the bill requires one-to-one support, with all outstanding stable stocks with high-quality current assets, explicitly designated U.S. Treasury bills, with maturity of less than 93 days. The legislation also aims to limit the ability of stablecoins to provide yields, which may be designed to prevent direct competition with traditional money market funds. Its focus is on establishing federal standards for federally authorized issuers.
Source: gongress.gov
Stable behavior: The House’s Stablecoin legislative version, the Stability Act, clarifies that payments must be made in national currency and explicitly excluded from “deposits” or “accounts” under existing banking laws. Similar to the Genius Law, it requires a one-to-one stablecoin.
Under the Stability Act, these federal standards will apply to all permitted payments Stablecoin issuers, and federal authorities require consulting the state government to develop these standards.
SEC Position: In a major development in February 2025, the Securities and Exchange Commission (SEC) has provided regulatory clarity for stable shares that assume surrender by approval of “certificates” under securities regulations.
This approval allows these assets to operate under specific rules, including registration, disclosure requirements and investor protection, and signals a defined pathway for regulated load-bearing products within the United States.
Anti-CBDC Position: U.S. policy, especially under President Trump’s administration, has taken a strong stance on the Central Bank Digital Currency (CBDC). These are seen as essentially non-American due to concerns about privacy risks and potential government surveillance.
Instead, the United States prioritizes privately issued stable shares backed by the U.S. dollar as the preferred mechanism for maintaining and expanding the global role of the U.S. dollar.
International stability regulations
HongkongThe Legislative Council passed a comprehensive Stablecoins Act on May 21, 2025. This positioned New York City as a regulatory leader. Its key provisions include strict licensing, strong reserve asset authorization and guaranteed standard value redemption. Stablecoin holders also gain direct rights to retain assets during issuer bankruptcy. The Hong Kong approach may set regional benchmarks.
Meanwhile, European mica policies often favor central bank digital currency (CBDC). They usually view private stablecoins as potential financial stability risks. For example, the Italian Finance Minister expressed concern. He pointed out that the new policy of stabilizing equity firms backed by the dollar could threaten financial stability in Europe.
Globally, more than 80% of Stablecoin transactions occur outside the United States. This fragmented regulatory landscape can cause chaos and friction. This also leads to higher costs for consumers. Here the United States recognizes a “golden opportunity”. It aims to establish international digital asset standards and potentially take advantage of its G20 presidency.
The US legislation (Genius Act, Stability Act) and Hong Kong’s new laws clearly demonstrate global regulatory competition. The United States links its stability policy to maintaining dollar domination. Hong Kong’s goal is to conduct regional benchmarks. This competitive landscape is further emphasized by European CBDC preferences. This difference could undermine global stable markets.
Different jurisdictions may favor different models, for example, the United States favors private dollar-backed stable stocks. This breakdown could hinder seamless cross-border payments and interoperability. Therefore, businesses operating internationally will face significant operational and compliance challenges. The United States’ active promotion of international standards is strategic. It aims to mitigate division and affect global landscapes. This intertwines financial innovation with national economic and geopolitical interests.
More: The Rise of Stablecoins: Market Updates and Key Statistics in 2025
Future Stablecoin adjustment trends
Looking ahead, Stablecoin regulations will intensify. Regulators will focus on stability, transparency and responsible growth.
Transparency will be key. The issuer must fully disclose the reserve parameters. Regular independent audits will become mandatory. Standardized reporting will ensure consistent reserve data. This will promote public trust and accountability.
For stability, regulators will require a clearer definition. The issuer must define a PEG threshold. They will outline the options that nails may compromise. Strong contingency plans will protect users. Regulators will distinguish “relative stability” from “absolute stability”. Issuers need comprehensive risk management, including capital buffering and liquidity reserves. These will maintain a stable value during volatility.
Regarding scalability, regulators will evaluate the appropriate industry. High-risk sectors such as gambling may face stricter restrictions due to AML’s concerns. Instead, remittances and cross-border payments may receive more support. These areas offer great potential for financial inclusion and efficiency.
Finally, international cooperation is crucial. Stablecoin transactions are global. A global framework that requires cohesion. Collaboration aims to reduce division and promote interoperability. It will ensure consistent standards across jurisdictions.
Future Stablecoin regulatory prospects and suggestions
The Stablecoin market is expected to achieve substantial growth and increase integration with the broader financial system.
- Estimated market growth: The Stablecoin market is expected to grow significantly. Forecasts suggest that it could reach $2 trillion by 2028. This is a significant increase from the current valuation of $234 billion. Stable issuances may double to $500 billion over the next 18 to 24 months. In this expansion, stabilizers that assume yield will gain market share. They can capture 15% of the total market, accounting for $75 billion of the issuance. This means a sevenfold increase in the current level.
Source: Coingecko
- Increase integration with traditional finance: Stable people are expected to play an increasingly important role in shaping the international financial system. They are seen as important bridges connecting traditional financial institutions with emerging financial technologies such as blockchain and DEFI protocols. Banks and financial institutions have begun to include Stablecoins in their products, indicating a growing action to accept and mainstream adoption.
- Strategic advice for businesses and investors: To effectively browse this dynamic sector, businesses must maintain agility, integrate complex compliance controls, and actively participate in ongoing regulatory discussions. For investors, regulatory clarity is determined as the highest driver of market growth and should be closely monitored when making allocation decisions. The industry’s long-term success will depend on its ability to adapt to new compliance requirements while continuing to innovate in key areas such as cross-border payments and digital financing applications.
The future of Stablecoins in mainstream finance depends on strong regulations. A clear international coordination framework is fundamental. Without these, compliance, security and systemic risk issues will limit institutional and public acceptance.
The “Wild West” era of Stablecoins is coming to an end. A more structured supervision environment is emerging. Regulatory responses around the world will increasingly determine the pace of innovation and adoption of Stablecoin. Regulatory clarity is the main catalyst used by mainstream institutions.
