#StablecoinLaw

**Jurisdictional Divergence & Key Challenges**

Global regulators approach stablecoins differently:

- **US:** Focuses on *payment stablecoins*, proposing federal oversight (e.g., *Clarity Act*) while states license issuers (e.g., NYDFS). Banks may get preferential treatment.

- **EU:** MiCA imposes strict reserve, licensing, and disclosure rules for *"asset-referenced tokens"* (e.g., USDT) and *"e-money tokens"* (e.g., USDC).

- **UK/Singapore:** Align with traditional payment laws, requiring full backing and AML compliance.

**Emerging Issues:**

- **Algorithmic stablecoins** (like UST) face bans or extreme scrutiny due to collapse risks.

- **Cross-border interoperability** lacks harmonization, complicating global transactions.

- **Reserve transparency** remains contentious, with audits and asset quality under spotlight (e.g., Tether’s reserves).

Regulators balance innovation against systemic risk and consumer safety.