Stablecoin law refers to the legal frameworks and regulations governing stablecoins, which are digital assets pegged to stable reserves like fiat currencies. These laws aim to ensure transparency, consumer protection, financial stability, and anti-money laundering compliance. Different jurisdictions, such as the EU’s MiCA regulation and the U.S.’s proposed Stablecoin TRUST Act, are developing specific rules for issuance, reserve backing, audits, and redemption rights. Regulators emphasize maintaining 1:1 reserve backing, clear disclosures, and oversight mechanisms. The evolving stablecoin law landscape is crucial for fostering trust, reducing systemic risks, and integrating stablecoins into traditional financial systems without compromising regulatory standards.

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