#StablecoinLaw
🌐 What Is stablecoin All About?
“#StablecoinLaw” refers to the emerging legal frameworks and policies being adopted across countries to regulate stablecoins — cryptocurrencies pegged to fiat currencies like the US Dollar.
Stablecoins are widely used for payments, trading, and DeFi, but regulators are now moving to ensure:
✅ 100% fiat reserves
✅ KYC/AML compliance
✅ Audited transparency
🚫 No algorithmic risk (for some regions)
---
📜 Key Regulatory Developments by Region
🇺🇸 United States – GENIUS Act (2025)
Passed in July 2025 – known as the first major U.S. federal stablecoin law.
Requires licensing, 100% reserves, real-time audits, and full AML/KYC compliance.
Critics call out a “Tether loophole”, as offshore issuers (like USDT) may escape full regulation until 2027.
🔗 GENIUS Act Signed into Law – The Verge
---
🇪🇺 European Union – MiCA (Markets in Crypto Assets Regulation)
Took effect in late 2024, becoming the world’s first full regulatory framework for crypto.
Stablecoin rules (Title III):
No interest-bearing stablecoins.
Full reserve backing required.
Algorithmic stablecoins banned.
EU market access limited to MiCA-licensed issuers only.
🔗 MiCA Explained
---
🇭🇰 Hong Kong – Stablecoin Bill (May 2025)
All fiat-pegged stablecoins (local and foreign) require:
Licensing by HKMA
1:1 reserve
Segregated custody
Strong penalties for violations
🔗 HK Stablecoin Law – BlockBeats
---
🇸🇬 Singapore
Operates under Payment Services Act (2019), updated in 2023.
Requires stablecoin issuers to:
Hold 1:1 fiat reserves
Maintain capital and audit standards
Apply for DPT licenses
⚠️ Risk Warning from Regulators
Bank of International Settlements (BIS) and FSB (G20) warn stablecoins could:
Undermine financial sovereignty
Disrupt monetary policy
Pose systemic risks if unregulated
📊 Regulation Overview Table
Region Regulation Highlights
USA 🇺🇸 GENIUS Act (2025) Federal license, 100% reserves, audits