Overview of Crypto Assets Stablecoin Regulation: From the United States to the World

In recent years, the development of crypto assets stablecoins has been rapid. From an application perspective, although the scale of the crypto world continues to expand, it is essentially not much different from 5-10 years ago. Currently, the most prominent applications in the crypto market are still currency-related, with Bitcoin and stablecoins being the most notable.

Bitcoin has gained global recognition with its astonishing growth curve, becoming a representative of decentralized currency. From a practical standpoint, stablecoins are the real cryptocurrencies that have achieved mass adoption. Currently, the global market cap of stablecoins has reached $243.8 billion, with a total trading volume of $33.4 trillion over the past year, 5.8 billion transactions, and more than 250 million active addresses.

Although the demand and logic for the application of stablecoins have matured significantly, their regulation is still in a phase of adjustment. Around the world, efforts are ongoing to improve the regulatory framework for stablecoins. The recent passage of the "Guiding and Promoting American Stablecoin National Innovation Act" (GENIUS Act) by the U.S. Senate has removed a major obstacle for global stablecoin regulation.

Current Status of the Stablecoin Market: Scale Expansion, Significant Head Effect

Stablecoins are a type of crypto asset that is pegged to fiat currencies, precious metals, and other underlying assets, designed to provide value stability. As a measure of value in the crypto market, the expansion of stablecoins reflects the growth of the industry. From a total circulation of less than $1 billion in 2017 to nearly $250 billion today, the growth rate of the stablecoin market is remarkable.

This round of the bull market can be said to be the bull market of stablecoins. After the FTX incident, the global supply of stablecoins temporarily fell to 120 billion USD, but then steadily increased, continuing to rise over 18 months. This corresponds with the trend of Bitcoin's price climbing from 17,500 USD to over 100,000 USD, reflecting the trend of external institutions entering the crypto market through stablecoins.

There are many types of stablecoins, which can be classified according to control center, fiat currency type, whether they accrue interest, and other criteria. Unlike other Crypto Assets, stablecoins serve as a core pricing tool, are not easily subject to speculation, and are universally applicable, laying the foundation for their role as a global currency.

In terms of market share, the US dollar stablecoin accounts for 99% of the share. USDT is the absolute leader with a market capitalization of 152 billion USD, accounting for 62.29%. USDC follows closely with a market capitalization of 60.3 billion USD, accounting for 24.71%. Together, these two account for over 80% of the market share. USDe, as a semi-decentralized stablecoin, ranks third with a market capitalization of 4.9 billion USD. Among decentralized stablecoins, USDS and DAI have scales of approximately 3.5 billion and 4.5 billion USD, respectively.

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 has proven to be highly profitable, attracting numerous institutions to enter the market. Traditional financial institutions like Visa and Paypal are actively positioning themselves, while internet companies are also eager to get involved. Recently, some emerging projects like USD1 have also joined the competition in stablecoins.

New Progress in US Stablecoin Regulation: GENIUS Act Passed by Senate

With the rapid development of the stablecoin market, regulation has followed. Currently, places like the United States, the European Union, Singapore, Dubai, and Hong Kong have begun or improved legislation related to stablecoins.

As a global Crypto Assets hub, the United States has undergone a process of transitioning from high uncertainty to gradually clearer regulation regarding stablecoins. Before 2025, there were no specific regulations from the U.S. Congress regarding stablecoins, and various regulatory agencies such as the SEC, CFTC, and OCC had their own definitions and regulatory approaches, leading to fragmented and chaotic regulation.

In February of this year, the U.S. House of Representatives and Senate respectively proposed the STABLE Act and the GENIUS Act. Both bills received support from the Trump administration, reflecting the top-level emphasis on the regulation of stablecoins.

The GENIUS Act was passed in the Senate on May 19, marking an important step in the regulation of stablecoins in the United States. The act employs a dual-track regulatory mechanism, imposing federal oversight on large-scale stablecoins (with assets exceeding $10 billion), while smaller stablecoins are regulated by individual states. The act also clarifies the boundaries with U.S. insurance credit and government credit to reduce systemic risk.

The passage of the GENIUS Act fills the regulatory gap for stablecoins in the United States, paving the way for the mainstreaming of the encryption industry. At the same time, this also helps to strengthen the position of the dollar in the global financial system, creating new purchasing demand for U.S. Treasury bonds.

The initial formation of the global stablecoin regulatory framework

Outside of the United States, other countries and regions are also actively promoting stablecoin regulation.

The EU has launched the Crypto Assets Market (MiCA) legislation before 2025, providing a comprehensive regulatory framework for crypto assets, including stablecoins. MiCA requires stablecoin issuers to maintain a 1:1 capital reserve, comply with transparency rules, and register with EU regulatory authorities.

In December 2024, Hong Kong submitted the "Stablecoin Ordinance Draft," adopting a prudent and inclusive approach, requiring issuers to be established in Hong Kong, have sufficient financial resources, and ensure that reserve assets maintain a 1:1 ratio with circulating stablecoins.

Singapore and Dubai have also launched their respective stablecoin regulatory frameworks. Overall, there is a strong convergence in global stablecoin regulation, primarily regulating issuers through a licensing system, and establishing regulations regarding reserve issuance, risk isolation, anti-money laundering, and other aspects.

Countries have successively introduced regulations on stablecoins, reflecting that stablecoins are gradually becoming an important component of the global currency market. This not only enhances the voice of the Crypto Assets market but also lays the foundation for key applications in the encryption field. At the same time, stablecoins provide the possibility of 24-hour global settlement for third-world countries, partially realizing Satoshi Nakamoto's original vision of free electronic cash.

In the long river of Crypto Assets development, stablecoins and Bitcoin may become the most vital existences, continuing to exert their unique value and significance.