U.S. regulations on stablecoins are dividing global liquidity, warns CertiK
12:12 ▪ 4 min read
The new U.S. framework for stablecoins, introduced by the GENIUS Act, is creating a marked division between U.S. and European liquidity, according to a report by blockchain auditor CertiK. While the law provides the long-awaited clarity to U.S. issuers, it is also accelerating the global divide between U.S. and European stablecoin markets.
In brief
The GENIUS Act creates the first unified U.S. framework for stablecoins, strengthening reserves and banning yield tokens.
European MiCA regulations diverge by requiring issuers to keep most of their reserves in EU banks, raising concerns about concentration risks.
CertiK warns that both systems divide global liquidity of stablecoins into separate pools in the U.S. and the EU.
GENIUS Act: Clear rules, fragmented liquidity
The GENIUS Act, signed by President Donald Trump in July, establishes the first federal manual for payment stablecoins in the United States. It imposes strict reserve requirements, prohibits interest-generating stablecoins, and integrates issuers into the U.S. financial system.
According to CertiK, these regulations provide clarity but also alter liquidity flows. Instead of a unified global stablecoin market, the United States is creating its own liquidity pool separate from that of the EU.
This change marks the first significant structural fragmentation of global stablecoin liquidity. CertiK warns that this could create cross-border friction, slow settlements between regions, and offer new arbitrage opportunities between U.S. and European markets.
$GEAR
$RIVER
