The stablecoin market is booming, and a global regulatory framework is gradually taking shape.

Although the scale of the crypto world has continued to grow over the past 5-10 years, there has not been a qualitative leap from the application level. Apart from Bitcoin, which represents decentralized currency, stablecoins have become a true example of large-scale application in the crypto field.

The current global market value of stablecoins has reached 243.8 billion USD. According to data platform statistics, the total trading volume of stablecoins in the past 12 months has reached 33.4 trillion USD, with trading occurrences reaching 5.8 billion times, and the total number of active unique addresses reaching 250 million. These data fully demonstrate the wide application demand and mature logic of stablecoins.

However, the regulation of stablecoins is still in the adjustment phase. Recently, the U.S. Senate passed the "Guiding and Promoting U.S. Stablecoin National Innovation Act" (GENIUS Act ), clearing obstacles for global stablecoin regulation once again.

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

Stablecoins provide value stability by pegging to underlying assets such as fiat currencies and precious metals, offering users reliable settlement, value storage, and investment tools. In 2017, the total circulation of stablecoins worldwide was less than $1 billion, and it has now approached $250 billion, while the global cryptocurrency market size has grown from less than $1 trillion to $3 trillion.

According to the latest data, this round of bull market can be seen as a bull market for stablecoins. After the FTX incident, the supply of stablecoins temporarily fell to $120 billion, but then steadily increased, rising continuously over 18 months. Meanwhile, the price of Bitcoin climbed from a low of $17,500 to over $100,000. This is mainly due to the involvement of external institutions, which usually prefer stablecoins as a medium.

Stablecoins come in a wide variety and can be classified by dimensions such as control center, fiat currency type, interest-bearing or not, collateral, etc. Unlike other crypto assets, stablecoins serve as a core pricing tool, are not used for speculation, and have no official restrictions, making them applicable worldwide and laying the foundation for them to become a global currency.

Stablecoins have begun to shake off the label of crypto investment and have become an important entry point for the integration of the crypto market and the global economy. Currently, USD stablecoins account for 99% of the market share and are jokingly referred to as "dollar branches." The market shows a tendency for the strong to get stronger, with a prominent head effect. USDT issued by a certain trading platform occupies 62.29% of the market share with a market value of $152 billion, while USDC ranks second with a market value of $60.3 billion, together accounting for over 80% of the market.

From the perspective of public chains, Ethereum occupies 50% of the dominant position, followed by Tron(31.36%), Solana(4.85%), and BSC(4.15%).

The issuance of stablecoins is profitable, attracting numerous institutions to enter the market. A trading platform's issuer is expected to achieve a net profit of 13.7 billion USD in 2024. Traditional financial institutions and internet companies are also actively positioning themselves in this field.

The Regulatory Process for US Stablecoins Accelerates

As a global cryptocurrency hub, the regulation of stablecoins in the United States has garnered significant attention. Before 2025, there are no specific regulations from Congress regarding stablecoins, leading to fragmented and chaotic regulation. However, with the new government taking office, the regulation of stablecoins has been accelerated.

In February of this year, the U.S. House of Representatives and Senate respectively proposed the STABLE Act and the GENIUS Act. In March, a certain leader expressed interest in stablecoins at the first cryptocurrency summit at the White House, hoping to submit related legislation to the President's office before August.

The STABLE Act and the GENIUS Act both target stablecoins, but their focuses are slightly different. STABLE places greater emphasis on federal unified control, while GENIUS advocates for a dual regulatory system that operates in parallel at both the state and federal levels. Both require a 1:1 reserve and monthly disclosures, but there are differences in issuance qualifications, algorithmic stablecoins, interest payments, and other aspects.

The GENIUS Act is currently progressing faster. On May 19, the U.S. Senate passed the procedural motion for the bill with 66 votes in favor and 32 against, clearing the way for final legislation. The next step will be to enter the full debate and amendment process in the Senate, after which it will be submitted to the House of Representatives for review. Considering the lower threshold for passage in the House, the likelihood of the bill ultimately becoming law is very high.

The Global Regulatory Landscape for Stablecoins is Taking Shape

Compared to the United States, the European Union introduced the MiCA legislation earlier, providing a comprehensive regulatory framework for crypto assets, including stablecoins. Hong Kong also released the "Stablecoin Regulation Draft" in December 2024, adopting a prudent and inclusive approach. Places like Singapore and Dubai have also been involved in stablecoin regulation.

Overall, there are limited differences in global stablecoin regulation, which focuses on licensing to regulate issuers and has clear provisions on reserve issuance, risk isolation, anti-money laundering, and more. The differences mainly lie in the types of stablecoins allowed, restrictions on issuers, and localized anti-money laundering compliance.

Major regions around the world have successively launched regulations on stablecoins, reflecting the increasing importance of stablecoins in the global financial market. Stablecoins are gradually becoming an important component of the global currency market, not only enhancing the voice of the crypto market but also providing the possibility of 24-hour global settlement for third-world countries, realizing the original intention of decentralized electronic cash.