Stablecoin News: Regulatory Landscape and Market Developments

The stablecoin market has been gaining traction, with various developments shaping its landscape. Here's a roundup of recent news and trends:

Regulatory Updates

- The US government has passed the GENIUS Act, a bill aimed at regulating stablecoins, requiring them to be backed 1:1 by trustworthy fiat or commodity assets. This move is expected to provide clarity and stability to the market.

- Singapore's Monetary Authority has finalized its Stablecoin Regulatory Framework, approving issuers like Paxos Digital and StraitsX. Hong Kong has also gazetted its Stablecoins Bill, with the first issuance licenses expected in early 2026

Market Trends

- The stablecoin market capitalization has grown significantly, with the top stablecoins by market cap being:

- Tether (USDT): $144 billion

- USDC: $59 billion

- Ethena USDe: $8.76 billion

- Dai (DAI): $5.37 billion

- Binance USD (BUSD): Although market cap isn't specified, BUSD is another well-known stablecoin

- PayPal is expanding its stablecoin, PYUSD, to offer a 3.7% annual yield, driving adoption and usage.

Industry Developments

- Circle, BitGo, Coinbase, and Paxos are pursuing bank licenses as two bills push for stablecoin regulation in the US.

- USDC's supply is expected to near $61 billion in 2025, driven by institutional demand outpacing USDT