Stablecoins Gain Prominence as U.S. Prioritizes Legislation

Global Firms Adapt to Emerging Stablecoin Regulations

Stablecoins are increasingly cementing their role in the global financial landscape, and the U.S. government is placing top priority on passing comprehensive stablecoin regulation laws to address this growing phenomenon. According to a detailed report from Shinyoung Securities, the U.S. administration is accelerating efforts to establish a robust legal framework, prompting international corporations to swiftly align their business strategies with these anticipated regulatory shifts. Analyst Im Min-ho highlights that since the launch of the Trump administration, the U.S. Congress has intensified its focus on introducing stablecoin regulatory bills, signaling a pivotal moment for the cryptocurrency sector. Among the key proposals are the GENIUS Act, spearheaded by Senator Bill Hagerty and three fellow senators, which builds on Hagerty’s 2024 legislative efforts, and the STABLE Act (2024), unveiled by Democratic Representative Maxine Waters, rooted in the earlier Clarity for Payment Stablecoins Act championed by former House Financial Services Committee Chairman Patrick McHenry. Additionally, Republican Representatives French Hill and Brian Steil have put forth the EH STABLE Act (2024), incorporating provisions to shift oversight of non-bank stablecoin issuers from the Federal Reserve to the Office of the Comptroller of the Currency (OCC), with an updated STABLE Act (2025) draft recently released. These legislative initiatives share a common thread: authorizing both banks and non-banks to issue stablecoins while mandating that reserve assets be confined to highly liquid and secure options, such as U.S. Treasury securities with maturities of three months or less, Federal Reserve deposits, cash, repurchase agreements (RPs) with terms of seven days or fewer, and reverse repurchase agreements. Despite differing views on supervisory authority, Im predicts that a bipartisan compromise could pave the way for final passage, given the evident consensus between the administration and Congress on the urgency of stablecoin regulation laws. Beyond stablecoins, the U.S. Securities and Exchange Commission (SEC) task force is exploring broader applications, including securities tokenization and blockchain technology integration in financial markets, suggesting that regulators are eyeing a more expansive role for digital assets.

Global enterprises are not standing still amid these regulatory developments; they are proactively adapting to the evolving stablecoin legislation landscape. Im notes that prominent cryptocurrency exchanges like Kraken and Crypto.com are gearing up to launch dollar-backed stablecoins that comply with anticipated U.S. standards, while Figure has achieved a groundbreaking milestone by securing SEC approval for the first interest-bearing stablecoin. Meanwhile, X (formerly Twitter) has hinted at its plans to roll out X-Money in the first quarter, potentially incorporating virtual assets and stablecoin-based payment systems into its platform. This flurry of activity extends to blockchain innovation, with companies such as Kraken (via its Ink platform), Sony (through Soneium), and Deutsche Bank unveiling their own Layer-2 blockchain networks. These moves indicate a strategic intent to leverage proprietary blockchain ecosystems for seamless integration with stablecoin-driven ventures, positioning these firms to capitalize on the shifting regulatory environment. The push for compliant stablecoin solutions reflects a broader trend: businesses are racing to align with U.S. stablecoin regulation laws while exploring new revenue streams in a rapidly maturing digital asset market.

Tether, the leading stablecoin by market capitalization, faces a critical juncture as its current reserve composition may not align with the proposed U.S. stablecoin regulation requirements. Im’s report reveals that approximately 27.7% of Tether’s reserves are held in assets like precious metals, Bitcoin, foreign government bonds, corporate debt, and secured loans, none of which qualify under the stringent reserve criteria outlined in the draft bills. With Tether holding 83,758 BTC as of its late 2024 audit, any move to reconfigure its reserves could exert significant supply pressure on the Bitcoin market, potentially impacting prices. Should Tether opt against adjusting its asset mix and face exclusion from the U.S. market, the ripple effects could destabilize not only the cryptocurrency ecosystem but also the U.S. short-term funding market, given Tether’s outsized role in global liquidity. However, two plausible scenarios emerge for Tether’s response: restructuring its reserves to meet the mandated asset types or launching a new compliant stablecoin through investments in qualified entities, mirroring its approach to the EU’s Markets in Crypto-Assets (MiCA) framework. Tether has publicly acknowledged ongoing discussions with U.S. lawmakers regarding stablecoin regulation laws, and given the unparalleled scale and significance of the American market, Im anticipates that the company will likely pivot toward reserve adjustments to maintain its dominance. The stakes are high, as Tether’s decisions could reshape the competitive landscape for stablecoins and influence broader market dynamics.

The momentum behind stablecoin regulation laws underscores their rising importance as a bridge between traditional finance and the digital economy. With a global circulation surpassing 190 billion dollars, stablecoins like Tether are vital for remittances, payments, and savings, particularly in developing economies. The proposed U.S. legislation aims to bolster consumer protection and financial stability by ensuring that stablecoin issuers maintain fully backed reserves in low-risk, liquid instruments. This approach mirrors international efforts, such as the EU’s MiCA, but the U.S. framework’s focus on short-term Treasuries and Fed deposits reflects a uniquely American emphasis on integrating stablecoins into its monetary system. For businesses, compliance with these emerging stablecoin legislation requirements opens doors to mainstream adoption, while noncompliance risks exclusion from one of the world’s largest markets. As Kraken, Crypto.com, and others prepare to launch dollar-backed stablecoins, and as Tether navigates its regulatory challenges, the interplay between innovation and oversight will define the next chapter for stablecoins. The SEC’s exploration of securities tokenization further hints at a future where stablecoins are just one piece of a tokenized financial ecosystem, amplifying their relevance. For now, all eyes are on Congress as it hammers out the details of stablecoin regulation laws, a process that could set a global precedent and reshape the digital asset landscape for years to come.