The global market capitalization of stablecoins has exceeded $240 billion, and the regulatory landscape is taking shape.

The stablecoin market is developing rapidly, and the global regulatory landscape is gradually taking shape.

Whether people admit it or not, from an application perspective, the current crypto world is fundamentally no different from 5 or even 10 years ago. Despite the ongoing expansion in scale and Defi becoming a major highlight, the most mainstream applications in the crypto market still concentrate in the currency domain, with stablecoins besides Bitcoin.

Although both of these cryptocurrencies have gained widespread recognition, their development paths are completely different. Bitcoin has won global recognition with its astonishing price growth curve, becoming a representative of decentralized currency. However, from the perspective of practicality rather than value storage, stablecoins are the cryptocurrency assets that have truly achieved large-scale adoption worldwide.

Currently, the global stablecoin market capitalization has reached 243.8 billion USD. According to data from a certain payment platform, the total trading volume of stablecoins in the past 12 months has reached 33.4 trillion USD, with a total of 5.8 billion transactions and the total number of active unique addresses also reaching 250 million.

This data fully demonstrates that the application demand and logic of stablecoins have become quite mature. However, from a regulatory perspective, stablecoins are still in the adjustment phase. In recent years, regulations on stablecoins have been continuously improved globally. Just recently, the U.S. Senate voted to pass a bill regarding stablecoins, clearing obstacles for global stablecoin regulation once again.

The development of stablecoins is rapid, and the head effect is significant.

Stablecoin is a type of cryptocurrency that maintains stable value by being pegged to fiat currencies, precious metals, bulk commodities, or asset portfolios. Its main goal is to eliminate the inherent volatility of cryptocurrencies, providing users with reliable settlement, value storage, and investment tools. As a measure of value in the crypto market, each expansion of stablecoins reflects the growth of the industry scale. In 2017, the total circulation of stablecoins worldwide was less than $1 billion, while today it has approached $250 billion. During the same period, the global cryptocurrency market size has also grown from less than $1 trillion to $3 trillion, moving from the fringe market into mainstream visibility.

Recent data suggests that this round of the bull market can be viewed as a bull market for stablecoins. After an incident on a certain trading platform, the global supply of stablecoins fell from 190 billion USD to 120 billion USD but then steadily increased, continuing to rise over the 18 months. Meanwhile, the price of Bitcoin has climbed from a low of 17,500 USD to over 100,000 USD. This is mainly because the liquidity in this round of the bull market comes from external institutions, and when these institutions enter the market, they typically prefer stablecoins as a medium.

There are various types of stablecoins in the current market, which can be classified based on control centers, fiat currency types, whether they earn interest, and collateral. Unlike other crypto assets, although interest-bearing or rebate stablecoins have started to appear in the market, stablecoins are essentially core pricing tools due to their stable value, are not used for speculation, and are less restricted by official institutions, making them usable globally, which lays the foundation for stablecoins to become a global currency.

In terms of coverage, emerging markets such as Brazil, India, Indonesia, Nigeria, and Turkey, especially those with weak financial infrastructure or facing inflation, have begun to use stablecoins in daily transactions, in addition to mainstream regions like Europe, the United States, Japan, and South Korea. According to a report released by a payment platform last year, the most popular use of stablecoins outside of the crypto sector is as a currency substitute (69%), followed by payment for goods and services (39%) and cross-border payments (39%).

This indicates that stablecoins are gradually shedding the label of crypto investments and becoming an important entry point for the integration of the crypto market with the global economy. Against this backdrop, the development pattern of global stablecoins has attracted significant attention. In terms of market share, US dollar stablecoins account for 99% of the stablecoin market, hence stablecoins are also humorously referred to as "dollar branches".

Specifically, due to the inherent scale effects of the currency itself, the strong continue to get stronger, and the prominence of leading players is a key characteristic in the stablecoin sector. Centralized stablecoins dominate the market, with a certain mainstream stablecoin becoming the absolute leader, achieving a market share of 152 billion USD, which accounts for 62.29% of the total market value. The second-ranked stablecoin has a market size of approximately 60.3 billion USD, accounting for 24.71%. Together, these two occupy more than 80% of the total market volume, indicating a high concentration. The third position is held by a semi-centralized stablecoin that stands out due to its unique mechanism and high yield, with a current market size of 4.9 billion USD. Since the collapse of a certain algorithmic stablecoin, the overall landscape of algorithmic stablecoins has declined, and in the ranking of stablecoins, only a decentralized stablecoin from a certain ecosystem remains at the forefront, with a size of about 3.5 billion USD. From the perspective of public chains, Ethereum holds an absolute dominant position, with a market share reaching 50%, followed by Tron (31.36%), Solana (4.85%), and BSC (4.15%).

The "GENIUS Act" was voted through by the U.S. Senate, an overview of the global stablecoin regulatory landscape

From a business perspective, stablecoin issuance is a lucrative business. Large-scale issuance can bring the marginal cost of the issuing institution close to zero, and the model of directly exchanging digital currency for cash allows the issuer to gain substantial profits from risk-free returns. Taking a well-known stablecoin issuer as an example, according to its revenue report for the entire year of 2024, the company achieved a net profit of 13.7 billion USD within a year, and the group's net assets soared to 20 billion USD, while the company team only had 165 people, showcasing remarkable employee efficiency. Such high returns attract major institutions to enter the market; in recent years, traditional financial institutions and payment giants have actively laid out in this field, and internet companies are also eager to make moves. Currently, a certain political family project has also launched a stablecoin, which soft-launched on April 12 and has rapidly expanded to integrate over 10 protocols or applications.

Regulatory Adjustment Accelerates, U.S. Senate Passes New Bill

As institutions enter the market, regulation follows. Currently, regions such as the United States, the European Union, Singapore, Dubai, and Hong Kong have begun or have already improved their legislative frameworks for stablecoins. As a global crypto hub, the United States is undoubtedly the most关注ed area.

The regulation of stablecoins in the United States has undergone a process from high uncertainty to gradually becoming clearer. Before 2025, the U.S. Congress did not enact specific regulations for stablecoins and cryptocurrencies. Regulatory agencies such as the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Office of the Comptroller of the Currency have defined stablecoins in order to gain regulatory dominance in this emerging field. The Financial Crimes Enforcement Network regulates entities engaged in cryptocurrency issuance and trading through a licensing system, while the Securities and Exchange Commission regards certain stablecoins as securities under the Securities Exchange Act. The Commodity Futures Trading Commission mainly focuses on anti-fraud and anti-market manipulation aspects of stablecoins. This complex regulatory system not only makes it difficult for entities to define their control, but under the U.S. administrative system, the regulatory environment for stablecoins in various states shows a trend of diversification.

Before 2025, the regulation of stablecoins was quite fragmented, and there were even power struggles between regulatory agencies, which brought a high degree of uncertainty and compliance challenges to the stablecoin industry. However, with the new government taking office, the regulatory process for stablecoins has clearly accelerated.

In February of this year, the U.S. House of Representatives and the Senate each proposed two bills related to stablecoins. The concentrated introduction of these bills is not coincidental, but rather a proactive action supported by high-level backing. At the first Crypto Summit held at the White House in March this year, government leaders expressed strong interest in stablecoins, not only calling them a "promising" growth model but also clearly indicating their hope that Congress would submit the relevant legislation to the President's office before the August recess, sending a clear signal.

On March 17, the Senate Banking Committee passed one of the bills with a bipartisan support rate of 18 votes in favor and 6 against, officially submitting it to the Senate. On March 26, another bill successfully submitted its revised version, and on April 3, it was approved by the House Financial Services Committee and submitted to the House for a full vote.

Although both are stablecoin bills, their focuses are slightly different. One bill prioritizes federal uniform regulation, while the other emphasizes the establishment of a dual regulatory system that operates in parallel at the state and federal levels. Regarding issuance qualifications, one bill limits it to insured deposit institutions and federally approved non-bank entities, while the other allows for a broader range of issuers to enter. Both require a 1:1 reserve backing and monthly disclosures, but one has stricter demands, requiring additional insurance from the Federal Deposit Insurance Corporation, while also imposing a two-year ban on algorithmic stablecoins, whereas the other allows exploration of algorithmic stablecoin mechanisms under specific conditions. Additionally, the two bills differ on whether to allow stablecoins to provide interest or returns to holders.

The "GENIUS Act" was voted on and passed by the U.S. Senate, an overview of the global stablecoin regulatory landscape

During the implementation process, both major bills faced multiple challenges. State governments opposed the federal regulatory priority, some industry professionals expressed dissatisfaction with the strict terms, and the dual-track system raised concerns about increased compliance costs. There are opinions that an excessive focus on the domestic U.S. market may overlook the usage needs of third world countries.

Currently, one of the bills is progressing relatively quickly. On May 9, the bill failed in a Senate vote with 48 votes in favor and 49 votes against, due to the opposition's demand for strengthened anti-corruption provisions and a ban on members of the executive branch holding cryptocurrency, but the ruling party did not concede. In response to this event, the U.S. Secretary of the Treasury publicly expressed dissatisfaction with the decision.

Shortly after, the bill was amended for the second time. In the updated version, the regulatory mechanism was divided by scale, meaning that stablecoins with assets exceeding 10 billion are federally regulated, while those with a market value below 10 billion are self-regulated by states. It also clearly delineated from U.S. insurance credit and government credit, reducing systemic risk and increasing restrictions on technology companies' participation in stablecoins. Although the updated bill still does not fully address the opposition's ethical concerns, it has made progress in terms of investor protection and existing mechanisms. Against this backdrop, some opposition party members changed their stance, and on the evening of the 19th, the U.S. Senate passed the procedural motion for the bill with a vote of 66 in favor and 32 against, clearing the way for final legislation.

The next step will enter the full debate and amendment process in the Senate, and then it will be submitted to the House of Representatives for review. Considering that the threshold for passing in the House of Representatives is relatively low, there is a high likelihood that the bill will ultimately be submitted to the President's office for signature to become law.

The passage of this bill is undoubtedly an important milestone in the history of cryptocurrency assets in the United States, filling the regulatory gap for stablecoins in the country, clarifying regulatory entities and rules, and further promoting the vigorous development of the U.S. stablecoin industry, adding bricks to the mainstreaming of the crypto industry. From the perspective of the United States, after the enactment of the regulations, the benefits of the U.S. dollar deeply penetrating its influence based on stablecoins will become more prominent, and the trend of the crypto market becoming subordinate to the U.S. dollar will continue to strengthen, providing a core driving force for building centralized and decentralized hegemony for the dollar. It is worth noting that regardless of the type of bill, stablecoin holders must hold U.S. Treasury bonds, dollars, etc., which also creates new sustained purchasing demand for U.S. Treasuries.

Outside the United States, global stablecoin regulation has begun to take shape

The clear regulation of stablecoins will not come until 2025, which shows that the United States is not at the forefront in this area. In fact, the European Union introduced the Crypto-Asset Market Regulation well before the United States, providing a comprehensive regulatory framework for all crypto assets including stablecoins. Regarding stablecoins, the regulation classifies them into asset-referenced tokens and electronic money tokens, similarly prohibiting algorithmic stablecoins, and requires stablecoin issuers, especially those with a certain market scale, to maintain a 1:1 capital reserve and comply with transparency rules while completing registration with EU regulatory authorities. At the same time, the European Insurance and Occupational Pensions Authority recommends implementing strict capital management systems for insurance companies holding crypto assets (including stablecoins), requiring insurance companies to hold such assets.

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ruggedNotShruggedvip
· 15h ago
So stable that it can't be more stable?
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CryptoMomvip
· 15h ago
Stability doesn't matter, my old mother is only bullish about the rise.
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SelfSovereignStevevip
· 15h ago
Regulation is here, but we still carry on.
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gas_fee_therapistvip
· 15h ago
240 billion USD is still considered small? To da moon!
View OriginalReply0
AirdropHarvestervip
· 15h ago
There are big profits to be made again.
View OriginalReply0
FUDwatchervip
· 16h ago
Regulation is here
View OriginalReply0
GweiWatchervip
· 16h ago
So good! I used to criticize stablecoins every day.
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