#StablecoinLaw The growing adoption of stablecoins has prompted regulators worldwide to draft dedicated stablecoin laws to ensure financial stability and consumer protection. Unlike volatile cryptocurrencies, stablecoins are pegged to stable assets like the U.S. dollar, making them popular for payments, remittances, and DeFi activities. However, without clear legal frameworks, their unchecked growth could pose systemic risks.

Governments, particularly in the U.S., U.K., and the EU, are introducing regulations to mandate reserves transparency, licensing of issuers, and anti-money laundering (AML) compliance. The U.S. Congress has proposed bills requiring stablecoin issuers to maintain 1:1 asset backing and undergo regular audits.