The regulatory framework for stablecoins is taking shape, with various regions around the world introducing relevant regulations.

In recent years, stablecoins have rapidly developed globally, becoming an indispensable part of the cryptocurrency market. From an application perspective, there is no essential difference between the current crypto world and that of 5-10 years ago, but the scale has significantly increased, with DeFi being the biggest highlight. However, the cryptocurrencies that have truly achieved mass adoption remain Bitcoin and stablecoins.

Currently, the global market capitalization of stablecoins has reached 243.8 billion USD. According to data platform statistics, the total trading volume of stablecoins in the past 12 months has reached 33.4 trillion USD, with the number of transactions reaching 5.8 billion and the total number of active unique addresses reaching 250 million. These data fully demonstrate that the demand and logic for the application of stablecoins have matured.

From a regulatory perspective, stablecoins are still in the adjustment phase. Regulatory frameworks for stablecoins are continuously being refined around the world. Recently, the U.S. Senate voted to pass the "Guiding and Promoting American Stablecoin Innovation Act" (GENIUS Act ), clearing obstacles for global stablecoin regulation once again.

Stablecoin development is rapid, with a significant leader effect.

Stablecoins provide value stability by being pegged to underlying assets such as fiat currencies and precious metals, aiming to eliminate the high volatility of cryptocurrencies. As a measure of value in the crypto market, the expansion of stablecoin supply reflects the growth of the industry. In 2017, the total circulation of stablecoins worldwide was less than $1 billion, and now it is close to $250 billion. During the same period, the global cryptocurrency market size grew from less than $1 trillion to $3 trillion.

This bull market can be seen as a bull market for stablecoins. After the FTX incident, the global supply of stablecoins dropped from $190 billion to $120 billion, and then steadily grew over the next 18 months. Meanwhile, the price of BTC rose from a low of $17,500 to over $100,000. This is mainly due to the involvement of external institutions, which typically prefer stablecoins as a medium.

There are many types of stablecoins, which can be classified according to dimensions such as control center, fiat currency type, whether they accrue interest, and collateral. Unlike other cryptocurrencies, stablecoins serve as a core pricing tool with stable values, are not used for speculation, and generally have no official restrictions, making them globally applicable and laying the foundation for them to become a global currency.

Stablecoins have a wide range of applications. In addition to mainstream regions like the US, Europe, and Japan, emerging markets such as Brazil, India, Indonesia, Nigeria, and Turkey have also started using them in everyday transactions. According to a report from a certain payment platform, the most popular uses of stablecoins in non-crypto areas are as a currency substitute (69%), for paying for goods and services (39%), and for cross-border payments (39%).

Currently, US dollar stablecoins account for 99% of the stablecoin market. Among them, a certain centralized stablecoin has a market value of 152 billion dollars, accounting for 62.29%; the second largest stablecoin has a market value of 60.3 billion dollars, accounting for 24.71%. Together, these two account for over 80% of the total market. From the perspective of public chains, Ethereum dominates with a market share of 50%, followed by Tron(31.36%), Solana(4.85%), and BSC(4.15%).

The issuance of stablecoins is a lucrative business. Large-scale issuance can drive marginal costs close to zero, and the model of directly exchanging digital currencies for cash allows issuers to gain considerable profits. This has attracted traditional financial institutions and internet companies to actively position themselves in this space.

Regulatory Acceleration: U.S. Senate Passes GENIUS Act

As institutions rush to enter the stablecoin space, regulation is also coming. Currently, the United States, European Union, Singapore, Dubai, Hong Kong, and other places have begun or completed the legislation of stablecoin regulatory frameworks. As a crypto hub, the regulatory trends in the United States are receiving significant attention.

Before 2025, the U.S. Congress had not yet enacted specific regulations for stablecoins. Agencies such as the SEC, CFTC, and OCC regulated stablecoins based on existing laws, leading to fragmented and chaotic oversight. However, with the new government taking office, the regulation of stablecoins has been accelerated.

In February this year, the U.S. House of Representatives and Senate respectively proposed the STABLE Act and GENIUS Act. In March, the White House held its first crypto summit, where high-level officials expressed support for stablecoin legislation. On March 17, the Senate Banking Committee passed the GENIUS Act. On April 3, the STABLE Act was passed by the House Financial Services Committee.

The STABLE and GENIUS bills have slightly different focuses. The STABLE bill emphasizes federal unified control, while the GENIUS bill establishes a dual regulatory system that operates in parallel at the state and federal levels. Both require 1:1 reserve backing and monthly disclosures, but there are differences in issuance qualifications, algorithmic stablecoins, and interest payments.

Currently, the GENIUS bill is progressing faster. After the first Senate vote failed on May 9, the bill was revised. On the evening of the 19th, the Senate passed the procedural motion for the GENIUS bill with a vote of 66 in favor and 32 against, clearing the way for final legislation. The bill is expected to be submitted to the President's office for signing into formal law soon.

The passage of this bill will fill the regulatory gap for stablecoins in the United States, promote the development of the stablecoin industry, and also strengthen the influence of the dollar in the cryptocurrency market. It is worth noting that the bill requires stablecoins to hold U.S. Treasury bonds, creating new demand for U.S. debt.

Initial Formation of Global Stablecoin Regulation Landscape

Outside the United States, regions such as the European Union and Hong Kong have also introduced regulatory frameworks for stablecoins. The EU's MiCA legislation provides comprehensive regulation for crypto assets, including stablecoins. Hong Kong submitted the "Stablecoin Regulation Bill" last December, which is expected to complete legislation soon. Singapore, Dubai, and other places have also involved stablecoin regulation.

Overall, there are limited differences in global stablecoin regulation, which mainly revolves around a licensing system, with clear provisions on issuance reserves, risk isolation, anti-money laundering, and so on. The differences mainly lie in the categories of stablecoins allowed, restrictions on issuers, and localized compliance requirements.

Major regions around the world have introduced stablecoin regulations, reflecting that stablecoins are becoming an important component of the global currency market. This not only enhances the voice of the crypto market but also lays the foundation for key applications in the crypto space. At the same time, stablecoins offer third world countries the possibility of around-the-clock global settlement, achieving the vision of decentralized electronic cash to some extent.

Looking back at the development of cryptocurrencies, there may not be many applications that truly have value and significance, but at least stablecoins and Bitcoin will continue to play their roles.