U.S. Stablecoin Regulation Advances Amid Global Shifts

Progress is being made on stablecoin regulation in the United States as lawmakers and regulators work to establish clearer rules for issuers, custody, and market participation. This comes amid broader global shifts—such as the EU’s Markets in Crypto-Assets (MiCA) framework and other jurisdictions advancing digital asset oversight—to ensure stability, consumer protection, and compliance with anti-money-laundering standards.

Who they are:

U.S. regulators and lawmakers (including the Treasury, SEC, and Federal Reserve) are leading efforts to formalize stablecoin rules.

Stablecoin issuers like Tether (USDT), Circle (USDC), and Paxos (PAXG) are major market participants affected by these rules.

Market & Money Supply Impact:

From a money supply perspective, formal regulation can increase confidence and institutional participation, potentially expanding stablecoin circulation in regulated channels. While stablecoins don’t create new fiat currency, broader adoption increases money velocity by facilitating faster, more efficient settlement and liquidity in crypto and cross-border finance. Clear rules may also shift capital from unregulated stablecoins to compliant versions, improving overall market health and stablecoin liquidity within the financial system.