The Arrival of the Stablecoin Legislative Era: Reshaping Financial Order and International Power Struggles

Summary

Stablecoins are classified into three types based on their price anchoring methods: fiat-collateralized, crypto-collateralized, and algorithmic stablecoins. Currently, the global stablecoin market capitalization has reached $260.728 billion, accounting for approximately 1% of the nominal GDP of the United States in 2024, with over 170 million users. Governments around the world are increasingly focusing on the regulation of stablecoins, with the core legislative motivations covering financial stability, monetary sovereignty, and cross-border capital regulation. Economies such as the United States and Hong Kong have already introduced systematic regulatory frameworks, and global stablecoins are entering a period of strong regulation, reshaping the international financial order and the landscape of monetary power.

The rise of stablecoins is behind the hidden competition between monetary sovereignty and financial hegemony. As an intersection of financial sovereignty, infrastructure, and capital market pricing power, stablecoins have become the focus of financial governance. Despite enhancing financial efficiency, stablecoins still face challenges such as anchor mechanism risks, decentralization contradictions, and cross-border regulatory coordination.

Introduction

On July 18, 2025, the U.S. House of Representatives passed the GENIUS Act, and the CLARITY Act, which regulates the structure of the cryptocurrency market, has been submitted to the Senate. At the same time, Hong Kong will implement the stablecoin regulations on August 1, the Bank of Russia is providing crypto custody services, and Thailand is launching a cryptocurrency sandbox. These mark the entry of stablecoins into the regulatory era, and the great power competition regarding stablecoins has officially begun.

This article aims to analyze the reasons behind the stablecoin legislation of various governments, compare the similarities and differences of the bills, and explore the impact of stablecoin compliance on the existing financial order, providing references for industry decision-making. It is recommended that investors pay attention to regulatory trends, focus on participating in fiat-backed stablecoins, and avoid the risks of algorithmic stablecoins. Traditional financial institutions should adapt to the trend of asset tokenization, while crypto institutions should promote the progress of compliance.

Definition and Classification of Stablecoins

A stablecoin is a type of cryptocurrency designed to maintain price stability, usually by pegging its value to assets such as fiat currencies, commodities, or other cryptocurrencies, or by using algorithmic adjustment mechanisms to achieve value anchoring. Based on the price maintenance methods, stablecoins can be divided into three types:

• Fiat-collateralized stablecoins: The most common, accounting for 92.4% of the market share. Such as USDT, USDC.
• Crypto asset collateralized stablecoins: such as DAI issued by MakerDAO.
• Algorithmic stablecoin: such as UST( has collapsed ).

Characteristics of Stablecoins

• Price Stability
• Bridging traditional finance and decentralized finance
• Lower payment costs and higher efficiency
• Anti-inflation and capital hedging

Main Application Scenarios

Stablecoins are widely used in various fields such as decentralized finance, cryptocurrency trading, cross-border trade, daily payments, and capital hedging. Among them, cross-border trade is the area of focus in the recent legislation in the United States and Hong Kong.

Legislative Background

The rise of stablecoins

The global stablecoin market capitalization has reached $260.728 billion, accounting for about 1% of the nominal GDP of the United States in 2024. There are over 170 million users holding stablecoins, representing about 2% of the global population, distributed across more than 80 countries and regions.

The motivation for government intervention and regulation

• Prevent systemic financial risks
• Maintain currency sovereignty and financial order
• Crack down on illegal cross-border capital flows
• Hedge against the impact of "US dollar stablecoin hegemony"
• Mitigate fiat currency credit risk and support national bonds

Progress on Stablecoin Regulation in Major Global Economies

The United States has launched the "Genius Act" and the "Clarity Act".

Core content of "Genius Act":

• Adopt a dual-track regulatory model of federal and state.
• Limited Issuance Subject
• Requirement for 1:1 fiat currency reserve
• The issuer must accept monthly audits and information disclosures.
• Prohibiting the provision of services such as interest on stored value.
• Restrict the circulation of foreign stablecoins

The Clarity Act aims to clarify the regulatory division of responsibilities between the SEC and the CFTC in the digital asset market.

Hong Kong launches the "Stablecoin Regulation"

Main content:

• Implement a licensing system
• Focus on fiat-backed stablecoins
• Set capital requirements
• Require 100% physical reserves
• Strictly comply with AML/CFT regulations
• Violations may constitute criminal liability.

Other Economic Dynamics

The EU, Singapore, Japan, and other countries are also actively promoting regulatory frameworks related to stablecoins. Overall, there is a cautious tightening trend, gradually taking shape.

Reconstructing Financial Order Under the Dominance of Stablecoins

The financial sovereignty competition behind stablecoins

The US dollar stablecoin accounts for over 90% of the market share, further consolidating the dollar's financial hegemony by being pegged to US Treasury bonds. Other countries are attempting to hedge against the influence of the US dollar stablecoin by promoting their own local currency stablecoins.

Competition of Next-Generation Financial Infrastructure

Stablecoins are becoming a core component of the new generation of cross-border payment and settlement infrastructure. Countries are competing for the position of cross-border digital financial hubs through policy guidance.

Competition for Pricing Power of Digital Assets

Stablecoins have deeply participated in the reshaping of pricing power in the digital asset market. The United States has strengthened its control over market pricing discourse through legislation, while other countries are promoting regional local currency stablecoins to strive for more pricing power.

Risks and Challenges

Preventing Systemic Risks

Stablecoins face the risk of de-pegging due to collateral price fluctuations. It is necessary to diversify asset allocation to combat systemic risks.

goes against the decentralized concept

Mainstream stablecoin models rely on centralized entities for operation, which contradicts the decentralized concept of blockchain.

Cross-border regulatory coordination difficulties

The regulatory frameworks vary significantly across countries, and the cross-border use of stablecoins faces legal risks and regulatory arbitrage issues.

potential financial sanction risks

The US dollar stablecoin may become a tool for financial sanctions, increasing political and compliance risks.

Conclusion

Stablecoins have become an important part of reshaping the monetary order in the digital financial era. Their development concerns the integration of decentralized finance with real-world assets, and also involves the construction of a new global financial order and the redistribution of discourse power. In the future, stablecoins will play an increasingly important role in financial infrastructure, currency competition, and the international settlement system.