The Era of Stablecoin Regulation Has Arrived: Reshaping the Global Financial Order

Abstract

The stablecoin market has now exceeded $260 billion, accounting for about 1% of the US GDP, with over 170 million users. Governments around the world are strengthening regulations, with core considerations including financial stability, monetary sovereignty, and cross-border capital control. The US, Hong Kong, and others have already introduced systematic regulatory frameworks, marking the official entry of global stablecoins into a strong regulatory era.

The rise of stablecoins is driven by the competition between monetary sovereignty and financial hegemony. As a convergence point of financial sovereignty, infrastructure, and capital market pricing power, stablecoins have become the focal point of financial governance.

Despite improving financial efficiency, stablecoins still face challenges such as anchoring mechanism risks, decentralization contradictions, and cross-border regulatory coordination.

Introduction

In July 2025, the United States passed the GENIUS Act and other legislation to regulate the structure of the cryptocurrency market. Hong Kong will implement the Stablecoin Regulation in August, and Russia and Thailand have also introduced related policies. The era of stablecoin regulation has officially begun, marking the start of a great power game.

This article analyzes the reasons for stablecoin legislation in various countries, compares the similarities and differences of the bills, and discusses the impact of stablecoin compliance on financial order, providing references for industry professionals. It is recommended to pay attention to regulatory trends, focus on fiat-backed stablecoins, and avoid the risks of algorithmic stablecoins. Traditional financial institutions should seize the trend of asset tokenization, while crypto institutions need to accelerate their compliance processes.

Legislative Background

The rise of stablecoin

The global stablecoin market capitalization has reached $260.728 billion, surpassing the market value of Mastercard, accounting for about 1% of the U.S. GDP. There are over 170 million users distributed across more than 80 countries and regions.

The motivation for government intervention in regulation

• Prevent systemic financial risks
• Maintain currency sovereignty and financial order
• Crack down on illegal cross-border capital flows
• Hedge against the impact of "US dollar stablecoin hegemony"
• Mitigate fiat credit risk, support government bonds

Progress on Stablecoin Regulation in Major Global Economies

The United States has launched the "Genius Act" and the "Clarity Act".

Genius Act core content:

• Implement a dual-track regulation system at the federal and state levels.
• Limited issuance subject qualifications
• Requirement for 1:1 fiat reserve
• Strengthen transparency obligations
• Restrict business scope
• Restrict cross-border circulation

Hong Kong launches the "Stablecoin Regulation"

Main content:

• Implement a licensing system
• Focus on fiat-backed stablecoin
• Set minimum capital requirements
• Require 100% reserve
• Strict Anti-Money Laundering and Consumer Protection
• Clarify violation responsibilities

Other economic dynamics

The EU, Singapore, Japan, and others are advancing regulatory frameworks, generally showing a prudent and stringent trend. Countries are widely focused on core principles such as reserve transparency, anti-money laundering, consumer protection, and financial stability.

Reshaping Financial Order Under the Dominance of Stablecoins

The financial sovereignty competition behind stablecoins

The USD stablecoin dominates the market, reinforcing the dollar hegemony through a "stablecoin - US Treasury bond" dual anchoring. Other countries hedge through legislation on local currency stablecoins and other means.

Competition of Next-Generation Financial Infrastructure

Stablecoins are becoming a core component of the new generation of cross-border payment and settlement infrastructure. The United States hopes to replicate a SWIFT-like hegemonic status, while other financial centers are competing for the status of digital finance hub.

Competition for Digital Asset Pricing Power

Stablecoins have participated in reshaping the pricing power of the digital asset market. USD stablecoins dominate the pricing discourse, while other countries strive for more pricing power through regional stablecoins.

Risks and Challenges

Prevent systemic risks

Stablecoins face systemic risks of decoupling due to price fluctuations of underlying assets. It is necessary to ensure a diversified asset allocation.

violates the principle of decentralization

Mainstream stablecoin models rely on centralized operations, which goes against the decentralized philosophy of blockchain.

Cross-border regulatory coordination difficulties

The regulatory frameworks vary greatly among countries, and there are legal risks associated with the cross-border use of stablecoins, which can easily lead to regulatory arbitrage.

potential financial sanctions risk

Stablecoins may be included in the financial sanctions toolkit, increasing political and compliance risks.

Conclusion

Stablecoins are reshaping the monetary order in the digital age, becoming a bridge between traditional finance and the digital economy. Their development is related to the integration of decentralized finance and the real economy, as well as the construction of a new global financial order and the reshaping of discourse power. Future development still faces challenges such as systemic risks, regulatory coordination, and contradictions in decentralization, requiring ongoing attention and exploration.