Written by: Xiao Sa Legal Team
In 2014, Tether launched the first mainstream stablecoin USDT (also known as Tether), pegged to the US dollar at a 1:1 ratio, marking the official birth of stablecoins. After undergoing a phase of initial exploration, rapid growth, and crisis and adjustment, stablecoins have once again revived and entered a rapid growth trajectory since the second half of 2023. As of July 2025, the total market capitalization of global stablecoins has exceeded 250 billion USD.
The United States has significant influence in the global financial system, with stablecoins pegged to the US dollar (such as USDT and USDC) dominating in terms of market capitalization, circulation, and application scenarios. The United States has made beneficial attempts in stablecoin regulation, serving as a model for the global market. On June 17, 2025, the US Senate passed the (Guidance and Establishment of the US Stablecoin National Innovation Act) (also known as the (Genius Act)), aimed at establishing a regulatory framework for US dollar-pegged stablecoins. The bill still needs to be passed by the House of Representatives and signed by the President to take effect.
As an international financial center, Hong Kong has actively explored and practiced in the field of stablecoins in recent years, passing the (Stablecoin Bill) in May 2025, which will take effect on August 1, 2025. Comparing the regulatory legal systems of stablecoins in Hong Kong and the United States has important practical significance and strategic value.
01 Regulatory Framework and Power Structure
Hong Kong: Single centralized regulation. Regulated by the Hong Kong Monetary Authority (HKMA) with unified licensing, covering three types of activities: issuing fiat-backed stablecoins in Hong Kong, issuing stablecoins pegged to the Hong Kong dollar overseas, and promoting fiat-backed stablecoins to the public in Hong Kong. The regulatory scope transcends geographical limits; even if the issuer is located overseas, as long as the stablecoin claims to be pegged to the Hong Kong dollar or is promoted to the Hong Kong market, a license must be applied for.
United States: Federal-state tiered regulation. Regulators like the Federal Reserve and the Office of the Comptroller of the Currency (OCC) oversee issuers with a market capitalization of over 10 billion USD; smaller issuers are regulated at the state level but must meet federal minimum standards. The bill also establishes the "Stablecoin Certification Review Committee" (SCRC), specifically to assess the issuance qualifications of large technology companies and prevent them from monopolizing the market using their advantages and user data.
02 Types of Stablecoins and Pegging Range
Hong Kong: In Hong Kong, the "stablecoin" managed by the (Stablecoin Bill) is a "designated stablecoin", which means (1) its value is pegged or referenced to one or more official currencies (such as the Hong Kong dollar, US dollar, etc.); (2) its value is referenced to a unit of account or economic value storage form designated by the Financial Commissioner (i.e., the HKMA) (such as Special Drawing Rights SDR, gold, etc.); (3) other digital value representations explicitly designated by the HKMA through a government gazette announcement. Any issuance of designated stablecoins in Hong Kong, or issuance of designated stablecoins pegged to the Hong Kong dollar outside of Hong Kong, or even promoting designated stablecoins to the public in Hong Kong globally, must apply for a license from the HKMA and comply with relevant regulatory requirements.
According to Hong Kong's (Stablecoin Ordinance), stablecoins can be issued in Hong Kong, with the Hong Kong dollar as the core peg, and also allow issuance of stablecoins pegged to other fiat currencies such as the US dollar and Chinese yuan. Each type of pegged currency requires a separate license application to ensure compliance. Stablecoins can peg to a single fiat currency such as the Hong Kong dollar, US dollar, and Chinese yuan, or peg to a basket of fiat currencies.
United States: In the United States, stablecoins are "payment stablecoins", meaning (1) virtual assets used or designated for payment or settlement, and (2) their issuers are obligated to conduct value conversion, redemption, or repurchase of stablecoins in fixed currency; or their issuers claim to maintain or create reasonable expectations that the value of the (stablecoin) will maintain a constant ratio relative to a fixed fiat currency amount.
03 Consumer Protection and Bankruptcy Disposal
Hong Kong: The Hong Kong (Stablecoin Ordinance) does not explicitly grant stablecoin holders priority claim rights in the event of issuer bankruptcy. The regulatory framework in Hong Kong focuses more on protecting user rights through asset isolation, mandatory audits, and redemption guarantee mechanisms (repayment at face value within a reasonable time).
United States: The (Genius Act) clearly stipulates that stablecoin holders have "priority rights" in the event of issuer bankruptcy, meaning the claims of stablecoin holders take precedence over all other creditors. The United States also requires issuers to clearly disclose redemption policies and fees, ensuring that users can redeem stablecoins in a timely manner.
04 Market Access and Capital Reserve
Hong Kong: The minimum paid-up capital requirement for applying for a stablecoin license in Hong Kong is 25 million HKD, or an equivalent amount in another currency that can be freely converted into HKD, or a currency approved by the Financial Commissioner for the implementation of this provision. Reserve assets must be independently custodied, using highly liquid, low-risk financial instruments (such as cash or high-quality bonds), and ensure that their value matches the nominal value of the stablecoin completely. Licensed institutions must handle redemption requests at face value under reasonable conditions, prohibiting barriers or delays in fulfilling redemption obligations.
United States: The bill does not explicitly specify a concrete "minimum threshold" amount, but the reserve requirements for highly liquid assets, the federal and state regulatory framework, and compliance and transparency requirements together form a high entry barrier. Each US state has requirements for customer fund management and redemption for money service providers, such as New York state's requirements: (1) any stablecoin regulated by the New York Department of Financial Services (NYDFS) must have 100% highly liquid assets as reserves; (2) issuers must establish clear redemption policies for stablecoins, allowing stablecoin holders to redeem stablecoins at face value from the issuer in a short time; (3) reserve accounts must not be confused with the issuer's own assets, and must be audited at least once a month by an independent registered accountant in the United States.
05 Anti-Money Laundering and Counter-Terrorist Financing Regulation
Hong Kong: For licensed stablecoin holders, the regulatory requirements implemented in Hong Kong are as strict as those for traditional financial institutions. The (Stablecoin Ordinance) requires that licensees must have and implement sound and appropriate control systems to prevent and combat potential money laundering or terrorist financing activities related to stablecoin activities. The (Anti-Money Laundering and Counter-Terrorist Financing Ordinance) revised in 2022 stipulates the control systems for licensed stablecoin holders, entities providing virtual asset services to licensees, and recognized institutions to prevent and combat potential money laundering or terrorist financing activities related to stablecoin activities.
United States: The Financial Crimes Enforcement Network (FinCEN) has explicitly stated that cryptocurrencies that can be exchanged for fiat currencies should be classified as "money", and stablecoin issuers are subjected to anti-money laundering regulations as "money service providers". Entities engaged in stablecoin business in the United States, especially those involved in the transfer of funds and currency exchange, must establish a comprehensive anti-money laundering compliance system and bear anti-money laundering obligations.
06 Conclusion
From regulatory framework to operational details, the differences between Hong Kong and the United States in the field of stablecoins are not about "superiority or inferiority", but rather beneficial attempts that are both similar and innovative. With the development of cross-border payments and the acceleration of digital asset globalization, clarifying the similarities and differences between Hong Kong and the United States in the field of stablecoins helps identify potential cooperation spaces and risk points, promoting the healthy and sustainable development of the global stablecoin ecosystem.
Issuers of stablecoins must ensure compliance, follow relevant laws to apply for licenses, and operate legally. Compliance is a prerequisite for the issuance and operation of stablecoins, rather than a remedial measure after the fact; compliance is not only a regulatory requirement but also a necessary condition for the issuers of stablecoins to establish legal relationships with relevant government agencies and users, continuously enhancing their business capabilities.
