#Stablecoin law refers to the legal and regulatory framework governing stablecoins—cryptocurrencies pegged to fiat currencies or other assets to maintain a stable value. Key legal issues include licensing, reserve backing, consumer protection, and compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) laws. Jurisdictions like the U.S., EU, and Singapore are developing specific rules for stablecoin issuers, often requiring transparency in reserves, redemption rights, and financial audits. Regulatory clarity is essential to prevent risks such as financial instability or fraud. As stablecoin use grows globally, legal frameworks continue to evolve to balance innovation, safety, and economic stability.
