China Orders Brokers to Halt Stablecoin Endorsements Amid Rising Investor Interest

Beijing — Chinese regulators have directed major domestic brokerages to stop publishing research promoting stablecoins, in an effort to cool surging investor enthusiasm for the digital asset class, sources familiar with the matter told Reuters.

The guidance, issued in late July and early August, comes as mainland investors have shown renewed appetite for information on stablecoins following Hong Kong’s passage of a stablecoin bill in May. While cryptocurrency trading remains banned in mainland China, brokerage firms say they have been fielding a wave of client inquiries on stablecoins and other digital assets.

According to the sources, the move includes halting public commentary and discontinuing research coverage that could be seen as endorsing the sector. Some financial think tanks have also reportedly been instructed to cancel planned seminars on stablecoins.

The People’s Bank of China declined to comment, and the China Securities Regulatory Commission has not responded to media requests.

The crackdown follows months of increasing public discussion of stablecoins by Chinese policymakers. In June, PBOC Governor Pan Gongsheng warned that the growth of stablecoins and digital currencies posed “huge challenges” for financial regulation. Last month, a Shanghai regulator convened local officials to explore strategic responses to the trend — though public details of the meeting have since been removed from official channels.

Stablecoins, typically pegged to a fiat currency like the U.S. dollar, are widely used by crypto traders to move between tokens and as a bridge between fiat and digital assets. Analysts say the regulatory pushback signals Beijing’s intent to prevent indirect exposure to cryptocurrency markets through stablecoin adoption, even as Hong Kong advances a more open framework.

Market watchers will be monitoring whether the new guidance dampens demand for offshore crypto services or simply pushes stablecoin discussions deeper into private channels.