- The U.S. GENIUS and STABLE Acts aim to regulate stablecoin issuance, potentially legitimizing a $243B asset class.
- Hong Kong’s new stablecoin law is attracting Chinese capital and boosting tokenization of real-world assets.
- Private sector leaders like MEXC and Circle are aggressively expanding stablecoin operations ahead of regulatory changes.
- The regulatory framework could stimulate more than $1 trillion in U.S. Treasury demand, reinforcing the dollar’s global dominance.
- Banks and fintechs alike are exploring new stablecoin-based services amid shifting competitive dynamics.
Stablecoins surge toward legitimacy amid global regulatory push, as landmark U.S. and Hong Kong policies reshape the landscape and major players like MEXC and Circle drive rapid institutional adoption.
In a watershed moment for digital finance, stablecoins – cryptocurrencies pegged to fiat currencies – are undergoing a sweeping transformation fueled by surging institutional adoption, new regulatory frameworks and growing geopolitical interest. What began as niche financial instruments to facilitate crypto trading has evolved into a full-fledged class of digital assets with the potential to redefine payment infrastructure, cross-border settlements and financial inclusion worldwide.
U.S LEGISLATION NEARS FINAL PASSAGE
The most significant development this week centers on Capitol Hill, where the U.S. Senate is in the final stages of debating the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025), aimed at regulating stablecoin issuers. A counterpart bill, the STABLE Act, passed earlier in the House. Together, they form the most comprehensive regulatory framework the industry has seen to date.
If passed, the GENIUS Act would require all stablecoin issuers – whether bank subsidiaries or nonbank entities approved by the Office of the Comptroller of the Currency (OCC) – to maintain full 1:1 reserves backed by safe assets such as U.S. Treasuries and bank deposits. Monthly reserve disclosures audited by third parties would be mandatory. Importantly, issuers operating without such licensure could face fines up to $100,000 per day.
The House version introduces tighter constraints, including a prohibition on interest payments to stablecoin holders and potential preemption of state regulatory regimes. Reconciling these differences is expected to take months, but bipartisan consensus reflects the growing recognition that regulation is essential for mainstream adoption.
GLOBAL EXPANSION: HONG KONG’S NEW LEGAL FRAMEWORK
While U.S. lawmakers iron out final amendments, Hong Kong has already enacted its stablecoin legislation. Under the new law, issuers must obtain a license from the Hong Kong Monetary Authority (HKMA) and adhere to rigorous requirements on reserves and transparency.
The move is attracting strong interest from mainland China. Citic Securities predicts a boom in tokenized real-world asset (RWA) projects, especially from firms using stablecoins to facilitate cross-border financial activity. Ant Group and JD.com subsidiaries are already piloting stablecoin issuance, targeting both HKD and USD pegs. JD’s Coinlink, part of the HKMA sandbox, is exploring stablecoin applications for international settlement.
This pivot positions Hong Kong as a strategic node in Asia’s evolving digital asset infrastructure, counterbalancing mainland China’s cautious stance while providing a sandbox for financial innovation.
MARKET REACTIONS AND PRIVATE SECTOR MOMENTUM
Exchanges and infrastructure players are already responding to the anticipated regulatory clarity. MEXC, a major cryptocurrency exchange, has invested $16 million in Ethena, the issuer of the synthetic dollar USDe and purchased $20 million worth of the stablecoin. As of May 2025, MEXC holds over $100 million in USDe total value locked (TVL), making it the second-largest holder among centralized exchanges.
This move helped drive USDe’s circulating supply to $5.2 billion, placing it fourth globally by market capitalization. Promotions such as zero-fee trading, staking incentives and $1 million in prize campaigns have bolstered user adoption. MEXC reports ENA token holders surged 30% in March alone and its TVL rose 14%.
In parallel, Circle – issuer of the USDC stablecoin – is preparing for a high-profile U.S. IPO targeting a $7.2 billion valuation. Its reserve income climbed 55.1% to $557.9 million in Q1 2025, but cost pressures remain high, with transaction and distribution expenses rising 68.2%. Despite the financial challenges, the pending GENIUS Act and STABLE Act could offer regulatory tailwinds by affirming Circle’s legitimacy and stability.
STABLECOINS AND MACRO STRATEGY
Stablecoins now account for approximately $243 billion in circulating supply, with over 83% tied to the U.S. dollar. The dominance of USDT and USDC in emerging markets has led to a phenomenon known as “informal dollarization,” where stablecoins become hedges against local inflation and capital controls.
Deutsche Bank and JPMorgan analysts suggest the new legislation could significantly boost demand for U.S. Treasuries. Stablecoin issuers, under both U.S. bills, must hold short-dated Treasuries as reserves. JPMorgan estimates this could translate into $350–$525 billion of T-bill demand, while Citi sees potential demand exceeding $1 trillion by 2030. Treasury Secretary Scott Bessent even posits this could reinforce the dollar’s status as the global reserve currency.
Yet this growth isn’t without risks. Economists warn of potential bank-run-like scenarios during market stress, reminiscent of TerraUSD’s collapse in 2022. Others fear regulatory asymmetry – especially if some issuers gain access to Federal Reserve master accounts – could distort financial markets.
INSTITUTIONAL OPPORTUNITIES AND COMPETITIVE LANDSCAPE
The proposed U.S. legislation opens the door for traditional banks and fintech firms to compete or collaborate. Banks may opt to issue tokenized deposits, serve as custodians for reserve assets or offer wallets and payment platforms powered by stablecoins. Unlike stablecoins, tokenized deposits could pay interest, offering a competitive edge and avoiding regulatory caps imposed by the House bill.
While nonbanks face fewer legacy constraints, banks benefit from existing regulatory infrastructure and user trust. Industry players like PayPal and Visa are already embedding stablecoin functionality into their global payment systems, foreshadowing a deeper convergence between traditional and decentralized finance.
PATH FORWARD: COORDINATION OR FRAGMENTATION?
Despite bipartisan momentum, the political path to final passage of stablecoin regulation is still uncertain. Key disagreements – such as whether to allow interest on stablecoins, federal preemption of state law and consumer protection standard – remain unresolved.
Moreover, geopolitical implications loom large. The U.S. aims to set global standards before rivals like China implement their own frameworks. But stablecoin innovation is now global. From Hong Kong’s sandbox pilots to U.S. Senate debates, the question isn’t whether stablecoins will gain traction – but under whose rules and jurisdiction.
〈Stablecoins Surge Toward Legitimacy Amid Global Regulatory Push〉這篇文章最早發佈於《CoinRank》。
