The regulatory landscape for stablecoins is gradually becoming clear, the U.S. "GENIUS Act" passed the Senate.

In recent years, stablecoins have been widely used globally, with both market capitalization and trading volume experiencing explosive growth. Currently, the global market capitalization of stablecoins has reached $243.8 billion, with a total trading volume of up to $33.4 trillion in the past 12 months, 5.8 billion transactions, and 250 million active addresses. These data fully demonstrate that the application demand and logic of stablecoins have become quite mature.

However, at the regulatory level, stablecoins are still in a transitional phase. Recently, the U.S. Senate passed the "Guiding and Promoting American Stablecoin Innovation Act" (GENIUS Act ), which has cleared some obstacles for global stablecoin regulation.

The stablecoin market is developing rapidly, with a significant head effect.

A stablecoin is a type of crypto asset that is pegged to fiat currencies, precious metals, and other underlying assets, aiming to provide value stability. As a measure of value in the crypto market, the expansion of stablecoins reflects the growth of the industry scale. In 2017, the global circulation of stablecoins was less than $1 billion, and now it is approaching $250 billion.

In terms of categories, stablecoins can be divided into centralized and decentralized, dollar and non-dollar, interest-bearing and non-interest-bearing types. Currently, dollar stablecoins occupy 99% of the market share.

The market shows a clear head effect. USDT occupies a 62.29% share with a market capitalization of $152 billion, while USDC ranks second with $60.3 billion, accounting for 24.71%. Together, these two account for over 80% of the market. USDe, USDS, and DAI also rank among the top. In terms of public chains, Ethereum dominates with a 50% share, followed by Tron, Solana, and BSC.

The Global Regulatory Framework for Stablecoins is Taking Shape

As a core region in the cryptocurrency field, the regulatory trends in the United States have attracted significant attention. Previously, the regulation of stablecoins in the US was quite fragmented, involving multiple agencies such as the SEC and CFTC. In February of this year, the House of Representatives and the Senate respectively proposed the STABLE Act and the GENIUS Act, aiming to construct a unified regulatory framework.

The GENIUS Act was passed in the Senate procedural motion on the evening of May 19 with 66 votes in favor and 32 votes against, clearing the way for final legislation. The bill will enter the full debate and amendment process before being submitted to the House of Representatives, and is expected to ultimately become formal law.

On the EU side, the MiCA bill was launched as early as 2022, providing a comprehensive regulatory framework for crypto assets, including stablecoins. Hong Kong also submitted the draft Stablecoin Regulation in December last year, which will resume the second reading debate on the 21st of this month. Related regulatory provisions have also been introduced in places like Singapore and Dubai.

Overall, global stablecoin regulation shows convergence, generally adopting a licensing system and making clear provisions regarding issuance reserves, risk isolation, and other aspects. The differences mainly lie in the details such as the types of stablecoins allowed and restrictions on issuers.

The gradual clarification of stablecoin regulation reflects its increasing importance in the global financial market. This not only brings more voice to the crypto market but also makes convenient global settlement possible. In the future, stablecoins are likely to become an important bridge connecting traditional finance and the crypto world.